SigniaDocs, a national eMortgage and document solutions provider, has announced that it has provided an automated system to address one of the biggest challenges in the eMortgage landscape—the warehouse lending process. SigniaDocs’ platform was recently utilized by one of the first non-depository mortgage lenders to close an eNote and have it funded by a warehouse lender.
“Warehouse lending in the paper world has certainly been reduced due to the financial crisis of the past few years. Warehouse lenders are understandably risk-averse by nature, and the ‘wet funds’ advance required for closing under today’s slow paper process just adds to their concerns. Being able to shorten a 24-48 hour process down to seconds will certainly provide new comfort,” said Paul Anselmo, chief executive of SigniaDocs.
SigniaDocs’ eVaulting and eClosing system for originating lenders solves the technical side of this business challenge with an open solution that can interface with any warehouse lender’s eVault, using MISMO standards and the MERS eRegistry and eDelivery systems.
“During the closing process, as soon as the eNote is signed, our eVault automatically performs a series of steps: The eNote is registered on the MERS eRegistry on behalf of the lender, a copy of the eNote is delivered to the warehouse lender’s eVault, and the lender transfers Control and Location—the equivalent of ownership in the paper world—to the warehouse lender,” saidHarry Gardner, chief strategy officer of SigniaDocs. “All of this happens within seconds, under automated control. We worked closely with our partners at Cooper River Financial and CMG to provide them with an eWarehouse solution with maximum assurance and minimum risk.”
The automated solution greatly increases the velocity of the warehouse lending process. Instead of waiting for the original paper note to be shipped to the warehouse lender after closing, and then shipping the note to the investor under bailee letter, the warehouse lender receives the eNote a few seconds after it’s signed and can immediately eDeliver it to the investor to examine for purchase. As soon as the investor is ready, the warehouse lender can transfer Control and Location to them. The entire warehouse lending process, from origination to investor purchase and replenish of the warehouse line, is complete within a couple of days. To cover all of the legal bases, the lender, warehouse lender and investor also typically create a “tri-party” agreement among them.
For more information, visit www.SigniaDocs.com.
