At the Digital Mortgage Conference, Dan Green, EVP Operations of Mortgage Cadence, discusses the importance of mobile capabilities when it comes to loan origination and the borrower experience throughout the loan transaction in the lending industry. Mortgage Cadence's Collaboration Center product was voted one of the top four demos of the Digital Mortgage Conference.
At Digital Mortgage 2017, over one thousand of the mortgage industry's most innovative executives gather to gauge which innovations drive the industry forward. After each round of demos, attendees vote for the solutions they think are most likely to succeed. Furthermore, with over 40 participating companies, Mortgage Cadence was designated as one of the top five "Best in Show" demos.
Mission Federal Credit Union enjoys the streamlined, comprehensive solution Mortgage Cadence provides. From application to compliance to closing, there's never a need to leave the platform.
By: Jim Rosen, "What's a Digital Mortgage, Really?," for Tomorrow's Mortgage Executive
Every mortgage publication these days either has an article about, a quote mentioning, or an advertisement declaiming the virtues of digital mortgage lending. For the moment, abandon all logic and surrender to the hype. This might have you believe offering digital mortgages will make you younger, leaner and more attractive to today’s borrower.
While some of this coverage is certainly hype, it is a reality that today’s borrowers want the true digital mortgage. This was confirmed in a recent study of actual borrowers commissioned by Mortgage Cadence and conducted by Accenture Research. The study found that the old-fashioned analog mortgage is too inconvenient and too cumbersome for borrowers’ busy lives.
This is especially true if the future homeowner already has a relationship with you. As they see it, you know everything about them already, so why the constant requests for information about this asset or that particular liability? In the borrower’s view, you should know that, or, at the very least, be able to figure it out.
By: Patrick Barnard for MortgageOrb, "Digital Mortgage: Lenders Must Focus on Security," featuring an interview with Paul Wetzel of Mortgage Cadence
PERSON OF THE WEEK: The e-mortgage has been evolving for several years now and the mortgage industry is very close to achieving a true, end-to-end, fully digital mortgage process. Although some roadblocks remain, particularly with regard to the acceptance of e-notarization and e-notes, “hybrid” e-mortgages, where most of the process is digital, are now quite common.
However, there still is no standard approach to how lenders do e-mortgages, which is not a surprise when one considers all the different technologies that are used – plus the fact that each lender uses a slightly different process, depending on the type of mortgage being originated and other factors. Therefore, it is important to view the e-mortgage as constantly evolving – not something that’s set in stone. As regulations and market forces continue to re-shape the mortgage industry, the e-mortgage will, by design, reflect those changes.
By: Trevor J. Gauthier, "The Year of Online Lending," for Scotsman Guide
Back before online lending caught on, borrowers had to spend an anxious and opaque 60 days or more as their loan was poked, prodded and examined for even the slightest hint of a problem before learning — often at the last minute — whether they could actually move into their dream home. This process wasn’t much better for mortgage companies,
Fifteen years ago, technology was barely applied to, let alone integrated into, the mortgage process. The manual process required to originate a single loan was expensive, time-consuming and required a lot of natural resources and physical storage space. Industry veterans will not soon forget the boxes and boxes of mortgage files scattered everywhere.
By: Jim Rosen, "Pixelation Nation: E-Closing in the Mortgage Industry," for Progress in Lending
Digital photography was invented 43 years ago. Today, we have grown so accustomed to taking photos with digital cameras – including our cell phones – that we no longer think twice about this technology. Sure, most of us grew up taking rolls of film to the store to be developed, but would you really trade the immediacy we have today for film? For most of us, the answer is “no way.”
The all-digital mortgage is similar to digital photography. It has gone from being a novel concept – something for lenders to strive for – to being something we hear about all the time. The need for all-digital-everything in mortgages has been driven by a number of considerations, including consumer demand for more timely and efficient interactions, complex compliance requirements, and a need to expedite lending activities. Non-bank lenders add to this mix with non-traditional lending practices and different risk profiles, creating a hyper-competitive lending environment.
In light of all of these factors, tack-on solutions or limited technology that only supports digital disclosures is just no longer going to cut it. As we adapt to the needs of today’s borrowers, we believe that embracing the all-digital mortgage experience is the best option for lenders to ensure that they have a lending platform that will support their future activities. Just as camera film has become all but obsolete, so too will be paper-based mortgage processes. Here’s how you can ensure you are at the forefront of this part of our digital revolution.
As mentioned, digital disclosures have long been an accepted first step in the digital revolution. Electronic signatures on early and upfront disclosures carried low risk and were simply implemented, and the options and flavors of eSign are numerous. However, lenders are realizing – and consumers are demanding – that you can’t just offer digital disclosures and then revert to paper for closing to realize the benefits of the digital mortgage.
There are two reasons for this. First, because of increased regulations that require compliance checks and procedural validations, lenders today automatically face higher costs per loan. And while increased costs can be mitigated with procedure redesign and staff training, lenders can only retrain so much without having to rely on technology to go further. Second, many of today’s mortgage borrowers seek automated, efficient financial solutions that they can control at the time and place of their choosing. While digitizing disclosures is a great start, today’s borrowers demand more and will go where they can find that all-digital experience.
That brings us to eClosing. The digital camera revolution took nearly fifteen years after its invention before consumers had a viable product they could buy. Similarly, the industry “standard” over the past decade for eClosing required lenders and platforms to dig deep. Their options included:
Investing in product or platform development or in a deep technology integration that had little to no general application to the process
Engaging in relationship-building and process validation with MERS and with Fannie Mae
Building, buying, or partnering with a solution that generates a complex technical version of the note, and acquiring an electronic vault in which to keep the records.
In the cold calculus of cost/benefit, lenders often could not make the conversion-to-payoff based on the large investment required. Costs to implement and maintain could not justify the potential or perceived benefits in consumer efficiency and/or backend reductions in cost, time, or processes. Faced with these tack-on approaches, many lenders waited for better options to come along.
Fortunately, just as digital cameras now are ubiquitous, all-encompassing digital mortgage solutions have proliferated, as well. Digital experts in the financial services industry have begun banding together to create fully-integrated solutions for lenders of all sizes. Lenders can now adopt the complex underlying technology for eNotes without the heavy investment in research, development, or infrastructure. With the availability of these solutions, consumers will begin demanding all-digital mortgages exclusively. Paper-based mortgage processes, while already on the way out, will hopefully become completely obsolete.
That brings us to the key question for lenders: Where are you on your digital mortgage journey? The movers and shakers in the industry are already providing borrowers with an all-digital mortgage origination experience. Taking the next step today can help meet borrower demand tomorrow.
By: Progress in Lending, "Here's What the Future of Mortgage Technology Innovation Will Look Like," featuring guest panelist Paul Wetzel of Mortgage Cadence
For the sixth consecutive year, PROGRESS in Lending Association hosted its groundbreaking ENGAGE Event. The event is designed to engage the mortgage industry to discuss and find solutions to so many pressing industry issues. This was a frank and thorough exchange of ideas and tips about how to solve the problems that face the mortgage industry. Yesterday we reported on what the speakers said about the future of mortgage regulatory compliance.
eNotary Expansion to Evolve eMortgage Market, Seeking Approval as Official Fannie Mae Technology Service Provider
BOSTON; October 25, 2016 – At the annual Mortgage Bankers Association (MBA) conference and expo here today, DocuSign – the global eSignature and Digital Transaction Management (DTM) leader – announced a series of expanded features that will allow lenders and title companies to complete a mortgage 100% digitally.
Known as eMortgage, the new service will empower lenders and their clients to electronically-sign the mortgage paperwork associated with the more than 12 million real estate documents and 2.5 million real estate transactions already DocuSigned every year.
The news marks an expansion of DocuSign’s ‘lead to close’ strategy for the real estate industry, first announced by the company’s Chairman and CEO Keith Krach in July this year. The strategy entailed DocuSign making its biggest investment in the real estate industry to date.
“DocuSign’s vision is to make the home buying process fully digital, from lead to close. DocuSign has transformed several aspects of home buying, but enabling a seamless, digital mortgage remained a paper-burdened experience for home buyers and sellers. Today’s expanded investments in eNotary demonstrate our commitment to making a completely paperless eMortgage reality,” explained Georg Gerstenfeld, general manager: Global Real Estate Solutions, DocuSign.
“This is against the backdrop of the real estate industry's widespread adoption of DocuSign, and is helping to add more than 130,000 new users to the DocuSign Global Trust Network every day. eMortgage is a natural next step to simplifying the end-to-end experience.”
Today’s announcement centers around two key areas:
• eNotary – this enhancement ensures that in-person eNotarizations can now be performed via DocuSign in Florida and Washington (in addition to North Carolina, which has been available since 2014). It is also expected that more than ten other states could be added before the end of the year. With eNotary, there is no need to print, scan or mail closing documents – all actions can be performed within the DocuSign platform, including applying a seal and exporting a notary log.
• Fannie Mae – reflecting the potential for the DocuSign platform to help speed the adoption of the broader eMortgage process, the company (with eOriginal as a partner) is seeking certification as an official Fannie Mae eMortgage Technology Service Provider – a certification that only a handful of technology organizations have been granted by the mortgage lender. Certification is expected by the end of year.
Several of DocuSign’s partners and customers have thrown their weight behind today’s announcement – including Fannie Mae and Accenture Mortgage Cadence.
“Fannie Mae is pleased that DocuSign is undergoing technical compliance testing with us for delivery of eMortgage loans, and is seeking approval to join our eMortgage Technology Service Provider listing,” said Cindy McKissock, Vice President of Customer Digital Experience, Fannie Mae. “Supporting our customers’ transition to digital closings is a priority for us – and we expect DocuSign’s platform to help remove barriers and obstacles to the adoption of eNotes, thereby increasing usage across the industry.”
For its part, Mortgage Cadence, an Accenture Company – an existing DocuSign partner – is excited about this focus on eMortgages.
“Mortgage Cadence is committed to making digital mortgages a reality. Combined with DocuSign’s digital mortgage strategy, these additional enhancements align well with our own vision to provide the last lending solution our customers will ever need,” said Jim Rosen, Document Center Product Manager at Mortgage Cadence.
“Today, lenders and title companies tend to rely on paper or hybrid processes to complete loans,” explained DocuSign’s Chief Product Officer, Ron Hirson. “We are supporting our Real Estate customers for today’s launch by delivering new eNotary and eNote features to our DTM platform – that helps more organizations move to a paperless process that is fully auditable, less prone to errors, and results in faster closings.”
The enhanced features are being shown this week at the MBA conference and expo are slated to come to market towards the end of the year. For more information, visit www.docusign.com.
About DocuSign, Inc.
DocuSign® is changing how business gets done by empowering anyone to send, sign and manage agreements anytime, anywhere, on any device with trust and confidence. DocuSign and Go to keep life and business moving forward. For more information, visit https://www.docusign.com/, call +1-877-720-2040, or follow us on Twitter, LinkedIn and Facebook.
Copyright 2003-2016. DocuSign, Inc. is the owner of DOCUSIGN® and all of its other marks (www.docusign.com/IP). All other marks appearing herein are the property of their respective owners.
By: Dan Green, "Seeds of Digital Change in the Real Estate Market," for Progress in Lending
Remember the days when stacks of paper, numerous phone calls, and “snail mail” made up the heart of the mortgage process? Yes, we are referring to those days in the not-so-distant past before the technology revolution made the all-digital mortgage a possibility. As we’ve seen, this technology revolution took the mortgage industry by storm, drastically improving day-to-day operations and increasing efficiency. A similar technological future awaits the home seeking process. As this future reveals itself, it is in our best interest as lenders to remain up to date with these changes to foster collaboration with real estate agents. Advanced planning and networking now will lead to a natural pipeline of referrals, allowing our future origination business to grow in unprecedented ways.
The initial stages of searching for a home have become almost exclusively digital, activating yet another technological revolution. Logically, the initial home buying effort begins with a simple online search to gauge market availability and pricing while also honing in on certain types of homes or neighborhoods. According to a recent report, about 90% of prospective home buyers use some type of online search in their home buying process. As millennials continue to make up more and more of the first time home buying population, the use of internet throughout the process will only increase.
As a result of this increase, home buying technology must continue to improve as well. Outside of current online listings and search functionality, there is limited digital capability to make an offer on – and ultimately purchase – a home online. Fortunately, seeds of change are already being planted through a few digital real estate companies that offer the capability to search, list, sell, and buy properties completely online. Similar to the all-digital mortgage where lenders and borrowers are notified of status updates through loan origination software, so too will home buyers and sellers make and receive offers and updates simultaneously. At first glance, it may seem like these digital changes eliminate the need for real estate agents altogether. Quite the contrary. Traditionally, the agent has handled the networking, contracts, and negotiation that are involved in the home buying process. Although many of these components will likely be handled digitally in the future, it is in the best interest of lenders, and borrowers, to continue partnering with real estate agents for a couple of reasons.
Networking Requires People. First, very few, if any, prospective home buyers want to buy a house sight unseen, so the agent becomes an important local resource in setting up showings. In addition to traditional showings, agents may also have the networking connections to point interested buyers in the direction of properties that would otherwise not be considered. Next, community appeal is a vital factor. Conversations with real estate agents can shed light on the unique local flair of an area, and help match the desires of the borrower with a fitting community. Realtors® may also use their local connections to recommend good inspectors, contractors, and other key individuals involved in the purchase of a home.
Digital Savviness Isn’t for Everyone. Additionally, depending on how comfortable the buyer/seller are with the online tools, the agent may be called upon to use their knowledge and expertise to perform the online negotiations and contractual components on their client’s behalf. Ultimately, this makes the process easier for both buyers and sellers, as well as ensures compliance from a legal standpoint. Thus, just as the role of the loan officer progressed with the all-digital mortgage, so too will the role of the real estate agent transform according to shifting digital demands. The future belongs to agents who are willing to adapt to these demands and take on more of a specialized, hybrid role within the industry.
What does all of this mean for lenders? Having a strong network of real estate agents will always be a sure way to increase origination business. Despite changes in the home buying process, agents will still spend more time with the home buyer than any other party. If you have the trust of the real estate agent, you’re more likely to win the trust (and business) of the home buyer.
As the real estate market begins to perfect and streamline this new process of buying a home, the logical next step is to integrate the mortgage process with the digital purchase of the home. Think of the visibility and brand awareness that would come along with having your institution’s loan products displayed alongside a listing of the buyers’ dream home. Whether this be in the form of a partnership or direct integration with the real estate websites, there’s no doubt it would be advantageous to all parties involved. No matter what changes are thrown our way within the housing industry, there’s no doubt proper preparation and innovation are key to remaining ahead of the digital curve.
By: Dan Green for Today's Lending Insights
A lender and I were talking the other day about fully paperless, completely electronic mortgage lending — what we now refer to as the digital mortgage. Digital mortgages live 100% in the virtual world. This is a big departure for our industry and from tradition: A mortgage is, or can be, a large collection of papers, often weighing three to five pounds, surrounded by a rather stiff cardboard carapace. Loans travel slowly and often chaotically through the mortgage manufacturing process with the help of any number of mortgage staffers. The goal is to go from application to closing as quickly as possible. Once closed, the loan is destined to spend eternity with other mortgage files in large, dark storage rooms where no one will ever pay attention to most of them again.
While many lenders are stuck sorting through paper, we’ve worked with one of the very first in the industry to make the move to digital lending. This lender’s willingness to trail blaze the digital mortgage process occurred for a host of practical reasons: efficiency, velocity, borrower communication, space.
None of this was easy. The transformation took about two years and was not without its difficulties. Not surprisingly, the hardest part of going digital is also the number one reason people don’t switch to e-readers: they do not want to abandon the paper experience.
If you’ve made the leap to an e-reader, this makes perfect sense. Books, like mortgage loans, are physical things. We interact with them in a particular way. How often, for example, do you flip back a few pages or a few chapters when reading a book to re-read a passage or an entire section? You know where in the book to look based on an approximate physical location in the book. Along the way you might stop and look at a few other things, too. This, at least in part, defines the paper experience.
So it is with mortgage loans. Files are constructed in certain ways. While a team member may have specific interest in the appraisal, he or she might take a look at the purchase agreement or the title report along the way, all to provide deeper context for the appraisal and the review. This is easy, because all of these items are in roughly the same place in every mortgage file.
The experience is different with a digital file, but only at first. Instead of flipping through pages, you click a few times, and you’re there. While this represents a change in the way people interact with the file, ultimately the experience proves to be more efficient.
Given the real and perceived complexities of transitioning your people from a paper-heavy process to a digital format, the question becomes, why go digital? As it turns out, borrowers like it. Loans can close more quickly than ever before, and borrowers appreciate getting their copy of the closing package electronically. Loan delivery takes place more quickly, too.
Then there’s the storage issue. No more paper means no more warehouses full of lonely, dusty mortgage files.
By the way, digital lending is nothing new for my lender friend. Her organization closed its first fully paperless, all-electronic mortgage in late 2008. Any lender with the right technology has the tools to make the switch to digital. The hardest part is giving up our love of paper. Once organizations go digital, however, they enjoy the benefits of a paperless environment. No one ever says, “Let’s go back to the way it used to be.”
DENVER, CO; Feb. 23, 2015 – Accenture (NYSE:ACN) introduced a new release of the Loan Fulfillment Center by Accenture Mortgage Cadence that offers e-signature functionality, enabling borrowers to electronically sign disclosures more easily and quickly, and with dramatically improved convenience and security.
The Loan Fulfillment Center, one of the two loan origination systems provided by Accenture Mortgage Cadence, is a cloud-based platform that offers credit unions, community banks and regional banks robust retail mortgage lending functionality through its Borrower Center, Document Center and Imaging Center solutions.
This latest release brings lenders closer to a completely electronic, wholly web-based mortgage process. The Loan Fulfillment Center with its new e-signature functionality delivers significant lender benefits:
Rapid delivery between ordering documents and sending to the borrower – merely minutes from start-to-finish.
A simple signing process that walks the borrower through which documents require a signature and which ones simply need review. The system also tracks which documents were signed and which are still outstanding.
Improved communication process that notifies both the borrower and the lender when major milestones are achieved, such as successful signature on all documents.
“Enhancing process transparency and improving convenience support lenders and borrowers alike,” said Paul Wetzel, senior product line lead of Accenture Mortgage Cadence. “Offering e-signature functionality brings the Loan Fulfillment Center one step closer to enabling the completely digital mortgage. From application, to processing, underwriting, and closing, including a robust document service complete with e-signature and e-delivery provides additional convenience and efficiency for lenders and their customers.”