Lender Processing Services Inc. (LPS), a provider of integrated technology and services to the mortgage and real estate industries, has announced that its ClosingStream 2.0 eSigning technology has been used to complete the first eSigned loan modification under Fannie Mae's Home Affordable Mortgage Program (HAMP).
Using LPS' ClosingStream 2.0, a Web-based, consumer-friendly workflow application with eSignature capabilities, the servicer was able to electronically create and send the borrower modification documents for review. The borrower was then able to review, sign, and return the modified loan documents to the servicer in only four hours. The same process, administered manually, can take as long as two weeks.
"We are very pleased that ClosingStream 2.0 is helping financial institutions successfully complete loan modifications and keep people in their homes," said Al Verkuylen, senior vice president, LPS Title, Closing and Verification Solutions. "Not only does ClosingStream 2.0 enable an efficient, secure process for borrowers to review and sign their loan modification agreements, it also reduces the time and effort that is required since paper is eliminated from the process."
ClosingStream 2.0 complies with the U.S. Treasury's business requirements for HAMP Electronic Signature Solutions (eHAMP). The system delivers the necessary functionality for eHAMP, including generating the documents necessary for the modification, electronically presenting those documents to the borrower and providing eSigning capabilities for final execution of the documents. By facilitating an end-to-end, easy-to-track approach for loan modifications, ClosingStream 2.0 users can significantly reduce document execution and delivery errors, lower postage and resource costs, and increase modification pull-through rates.
ClosingStream has also been used for the past several years to facilitate eSigning of refinances and non-government loan modifications. According to an LPS report, 88 percent of all modification orders placed are eSigned and 77 percent of all orders are executed within two days, reducing cycle time from an average of 10 days for traditional paper processes.
According to the company, ClosingStream 2.0 currently supports traditional and proprietary loan modification programs, the end-to-end HAMP loan modification process (pre-qualification, trial plan notice and final modification agreement), FHA/VA loan modification programs and the HomeSaver Advance eNote.
"LPS is proud that ClosingStream 2.0 has enabled the first completed eSigned HAMP loan modification," said Jeff Carbiener, LPS president and chief executive officer. "We are committed to continually delivering innovative technology that will add value to our clients' organizations."
For more information, visit www.lpsvcs.com.
