The first residential mortgage eClosing has become a reality in North Carolina, as lender Residential Mortgage Corp. and real estate technology provider Pavaso have enabled a North Carolina resident to complete the first such closing in state history. The eClosing took place at the Residential Mortgage Corp. office in Fayetteville in late September. Under the supervision of partner Susan Benoit Esq. of the Hutchens Law Firm, homebuyer Jacqueline Vaz finalized the “wet signing” by physically affixing her signature to a small number of documents specifically required by their investor. The remainder of documents requiring signature were finalized electronically.
“I had asked a lot of my friends and colleagues what to expect,” said Vaz. “I heard horror stories about how long the closing would be and how intimidating it was to sit with so many papers to sift through and be expected to sign within an hour or so.”
Fortunately, the reality of the experience was anything but a horror story.
“It gave me a high level of comfort to be able to read through all of my closing documents prior to coming to the closing table,” Vaz said. “I was also happy to be able to do it in the comfort of my own home. I had time to sit and read everything before my closing date, which took the pressure and stress away from the process.”
The otherwise traditional home closing was made historical by Residential Mortgage Corp.’s use of the Pavaso Digital Close solution, through which the traditionally hefty package of documents was digitally delivered to the buyer three days before closing. This provided Vaz with the time to review each document online to understand them and ask questions prior to closing. At the closing table, she was able to digitally sign all documents, with exception of the few documents by state law and investor requirements that required a “wet” signature. Each wet-signed document was automatically barcoded when printed from Pavaso’s system so that, upon the physical signing of the required documents, the forms could be digitally scanned and imported back into the system. From there, the Pavaso system would automatically sort, file and store the pertinent information electronically.
“Today’s closing is further proof that the age of the digital closing isn’t imminent—it’s here,” said Nancy Pratt, Pavaso VP of partner relations and government affairs. “This is what we would call a ‘hybrid closing.’ North Carolina supports a fully digital closing, allowing for eNotarization and eRecording, but a hybrid closing is necessary since many investors still require a physical, rather than digital, signature for certain closing documents.”
“We are pleased to help usher the mortgage transaction into a more consumer-friendly era in North Carolina,” said Jim Danis, president of Residential Mortgage Corp. “With the dawn of the digital closing, our clients can expect to be better informed and face fewer delays. The home Closing was once a process dreaded by consumers and professionals alike. That will no longer be the case as more closings are done digitally.”
The project of research and implementation of eClosings for Residential Mortgage Corp was spearheaded by Mary Bright, vice president of operations.
“After many years of perseverance, it’s rewarding to see this concept come to fruition not only in our home state, but in our own home town,” said Bright. “Jackie was the perfect candidate to join RMC on this inaugural flight into the future of mortgage lending. She immediately embraced the concept and recognized the benefits of e-Closings creating an informed and educated consumer.”
Pratt noted that e-closed loans have already been sold on the secondary market and that the process is growing.
“We’ve been working with Residential Mortgage Corp for years to make the eClosing a reality—this is a visionary organization driven to do anything within its power to improve the consumer experience,” Pratt said. “However, early on, an inability to sell the loans upstream to investors was a significant challenge. With Wells Fargo now stepping forward to buy hybrid loans closed on Pavaso, we’ve been able to make a seven year dream come true.”
