Creating a Seamless Experience
Whether lenders are aiming for a completely digital mortgage process or want to continue offering hybrid eClosing options to borrowers, there are certain capabilities that they absolutely need.
One is being able to let borrowers sign everything that needs to be signed—from disclosures to closing packages, eNotes, or any other document — in one seamless environment. If their goal is a true digital mortgage, they’ll need technology that incorporates the all-important online notarization piece, which has been the missing link for some time—but with today’s technology, it’s finally available.
They also need technology that supports the lender’s brand, not somebody else’s. Currently, when lenders shift borrowers from one technology provider to another, the borrower may not see the lender’s logo but all these different technology logos that mean nothing to them, which creates a sense of confusion and disconnect.
Lenders need to take diligence, security, consistency, and connectivity into account as well. For this reason, they’ll need a platform capable of creating a SMART Doc for every loan document, structured or not.
Keep in mind that most providers just focus on the eNote being a SMART Doc, which means they are usually manually tagging PDF of other documents for signing. Access to an entire SMART Doc library, on the other hand, gives lenders digital versions of every document in the loan file, which eliminates tagging and allows faster, electronic due diligence reviews. Ultimately, this enables lenders to manufacture loans properly and securely, so if they hit a bump down the road, no one questions the validity of their documents.
Lenders should also look for providers with serious digital mortgage experience on staff. When reviewing eClosing providers, it’s important to ask whether they have leaders with experience collaborating with the Mortgage Industry Standards Maintenance Organization (MISMO) on data standards for electronic transactions — or whether they are veterans of MERSCORP and understand the MERS eRegistry backwards and forwards. Very few providers do.
The Cost Of Inaction
Most lenders have no idea what the true costs of their technology investments are, especially when one factors in the cost of customer frustration. But while the borrower experience may be difficult to quantify, it definitely exists. When borrowers have so many lenders to choose from, it’s often not rates but a lender’s reputation and record of customer service that truly matter.
With today’s technology, all the stars are aligned for lenders to achieve a true digital closing and a better borrower experience. All the tools, capabilities and expertise are out there for lenders to defragment their entire loan ecosystem and turn it into a well-oiled machine. All they need is a comprehensive strategy and the willingness to execute it.