Traditionally, closing on a mortgage or home equity loan requires coordinating a lot of people, paperwork and signatures to happen at the same time and place. For both borrowers and lenders, this can be a source of frustration.
Typically, the average time to close a home loan is approximately 50 days and involves disparate technologies, people and processes – creating an environment prone to error. While many mortgage lenders still depend on the old way of doing things, leading mortgage and home equity lenders are striving toward a more cohesive digital mortgage platform that integrates appraisal, title and closing to streamline and accelerate loan cycle times.
We have discussed the value of appraisal modernization and the need for lenders to embrace digital mortgage trends in order to gain a competitive advantage, deliver exceptional customer service and expand market share and service locations. The final step in transforming your digital mortgage process is embracing e-closing and remote online notarization (RON).
Using a remote notary has transformational benefits for all parties involved in the mortgage process. RON was first introduced in Virginia in 2011 and has since been embraced by almost every state in the U.S. Not to be confused with the Uniform Electronic Transactions Act (UETA) from 1999, RON “is an electronic notarization where the person whose signature is being notarized and the notary are in different physical locations and are communicating via two-way audio-visual conferencing, the signatures are provided electronically, and the notarial seal is applied electronically,” according to Fannie Mae. You can find the full list of RON requirements in the Fannie Mae 2023 Selling Guide.
3 Big Benefits of Leveraging E-Closing and RON for Title and Closing:
- Improves data quality and safeguards against human-prone errors. The mortgage process is by nature a labor- and paper-intensive process. Missing documents and signatures in closing packages can be risky and inefficient. Automating key components of the title and closing process allows you to quickly gather, cross-check, sign, file and document the mountain of paperwork involved in closing much faster and with fewer errors. Having the right title and closing technology in place reduces the risk of missing signatures, documents or other accidental mishaps, provides copies of all necessary documentation to all stakeholders and third parties, ensures all compliance mandates are up-to-date and provides a complete audit trail of every interaction.
- Saves time and streamlines processes. Introducing technology to automate and streamline the title and closing process will dramatically reduce overall loan cycle time which is what everyone is looking to achieve. Title, e-closing and RON capabilities are easy-to-use and alleviate the administrative burden on your team members. Rather than having individuals in your organization coordinate the schedules and availability for borrowers, lenders, title agents, real estate agents and notaries to sign and witness all closing documentation – the entire process can be handled safely and securely online. This time savings is a huge win for all stakeholders involved.
- Delivers an exceptional borrower experience. Consumers are far less likely to choose a loan servicer or lender that is behind the times as far as the digitization of the mortgage process. Borrowers are living in an increasingly on-demand world – one where with the click of a button, they’re able to login to an app or website and transact instantly with brands they trust. They expect that same ease and expediency interacting with their mortgage or home equity lending provider. If a borrower has the option between a lender that has an e-closing option with remote notary – allowing them to close on their home from the comfort of wherever they are or printing large volumes of paperwork and being required to sign in-person with strangers physically present – which one do you think they’ll choose?
All signs point towards the need for lenders and loan servicers to switch to a digital mortgage platform that integrates appraisal, title and closing.
If your current technology provider is lagging behind or your current processes and systems are in need of a revamp, contact Accurate Group today and learn how our innovative technology solutions can pave the path to faster loan closings and happier borrowers.
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