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For many, it wasn't that long ago that paperless lending was just a dream or maybe even a fantasy. DocMagic has made this dream a reality.
What are the benefits to going electronic?
In this edition of the DocMagic Moment, Ron talks about taking the paper out of the mortgage process. He'll discuss the benefits of going electronic and how it can improve the borrower experience along with saving you time and money.
Listen Now: [audio www.docmagic.com/media/download/podcasts/2013/DocMagic-2013wk29.mp3]
Interview with Dominic Iannitti, President and CEO, DocMagic, Inc.
New compliance requirements don’t typically inspire the most innovative technology enhancements in the mortgage industry. But the upcoming overhaul of borrower disclosure forms has created an opportunity to re-engineer the way lenders and title companies execute mortgage closings, according to Document Systems Inc. CEO Dominic Iannitti.
The Consumer Financial Protection Bureau’s proposal to combine the final Truth in Lending Act disclosure and HUD-1 settlement statement into one document also includes a provision requiring delivery of this new “Closing Disclosure” three days prior to loan closing—which Iannitti says opens the door to provide additional disclosures at the same time.
“We’re seeing this particular new chapter in the workflow as being a great opportunity to deliver more of the closing documents upfront, perhaps even allowing for a complete review at that same three-day mark,” he said.
For years a core group of us has been telling the industry that it’s time to get the paper out of our systems. We’ve performed studies that show paper is more expensive, that it takes more time to process, is usually missing pages or signatures, or gets lost. It took the foreclosure crisis to really bring home to the industry the negative implications of lost or incomplete documents. After billions of dollars in settlements to federal regulators and attorneys general, it looks like our industry is finally ready to say goodbye to paper forever, or at least a majority of it.
Anyone who has yet to be convinced will get all the persuasion they need when the Consumer Financial Protection Bureau implements the Three Business Day Rule for mortgage loan closings. When lenders and their closing agents are forced to deliver a correct settlement statement to the borrower three days before closing, they’ll learn just how difficult it will be to get everything right and on time in a paper world. Taking their businesses fully electronic will be the only way to ensure compliance.