Jim Rosen: Why Now is the Time for eClosings
Jim Rosen is Vice President of Product Management with Mortgage Cadence, Denver. Mortgage Cadence offers an end-to-end digital loan origination system (LOS) that has 86% of their clients outperforming MBA average cost-to-close. Rosen has been with Mortgage Cadence for nearly seven years and has 20 years experience in the mortgage software and services industry.
From foreclosures and delinquencies to a complete rise in home purchasing, the mortgage market has gone in a multitude of directions as a result of the pandemic.
When it comes to closing, there are lots of moving parts involved that have traditionally been in person or on physical paper. However, things had to change rapidly. Although a challenge in the beginning, it has also presented a large opportunity and given borrowers and lenders more flexibility in how they complete tasks.
Tasks like valuations and the in-person exchange of keys and signing of documents have become a thing of the past. EClosings have quickly ignited and will continue to pave the way for borrowers and lenders alike. Additionally, technology has allowed institutions to look at closings differently and see how they can allow secure access to parties to complete a closing in a safe and seamless manner.
MBA NEWSLINK: In your view, how has the pandemic changed most changed closings?
ROSEN: Well, COVID changed pretty much everything. In terms of mortgage technology, our industry has made more progress in the last 12 months than we have in the previous 4 years.
For example, there were eClosing products, technologies and policies available prior to COVID, and while some forward-looking lenders showed significant interest in the technology there was little universal drive to implement it. That changed overnight last March. Now eClosings are more commonly understood as needed, valued and a necessary part of a lender practices, and are now easier to manage no matter the location and time, which has been a huge advantage with many remote and continuing to be remote for the foreseeable future.
NEWSLINK: Is that why you think now is the time for electronic closings?
ROSEN: Yes. Absolutely. The technology is available and tested, the industry is ready to adopt and consumers have been ready for some time.
And with innovative systems, the lender can offer a seamless electronic closing experiences to the borrower while still wet signing certain key documents to mitigate post-close risk. Now is the time.
NEWSLINK: What do these tech solutions look like?
ROSEN: What I find most exciting about what is being offered now is a simple way for lenders to do full eClosings or hybrids through the same system. This was previously a fractured process. Now, as the mortgage approaches the closing table, all of the components required to close are assembled inside a single system.
Whether the documentation flows from a proprietary document solution, from the title company or some other third party, all of the information can come together to provide a continuous consumer experience from app to closing.
The lender gets to decide what documents are signed electronically and they can do it all without ever leaving the system. Ensuring a safe and seamless solution for facilitating and managing all documentation in the mortgage process.
(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at msorohan@mba.org; or Michael Tucker, editorial manager, at mtucker@mba.org.)
