At DocMagic we’re all about making things simple. This often requires us to integrate with the other technologies you use in your business every day.
By Dominic Iannitti
President and CEO,
When the Mortgage Bankers Association released the most recent MBA Quarterly Mortgage Bankers Performance Report, few industry professionals should have been surprised to learn that loan originators achieved the lowest average profit per loan since the MBA began tracking performance in 2008. Likewise, loan origination expenses were the highest recorded in any quarter since the Performance Report was created midway through 2008.
How far has loan origination profitability fallen? The average per-origination profit among independent mortgage banks and mortgage banking subsidiaries of chartered banks in 4Q 2013 weighed in at an anemic $150, according to the MBA report. That’s down from $743 per loan in the third quarter. Meanwhile, loan production expenses increased by $591, to $6,959 per loan from the previous quarter.
Certainly the drop in mortgage originations, approaching 40% for some of the nation’s largest lenders, along with the inclement weather much of the nation received earlier this year, contributed to mortgage bankers’ current financial performance. Coupled with the precipitous rise in compliance-related expenses the industry has been experiencing, the lending side of the mortgage business is feeling the squeeze. According to the MBA, lenders are earning only 7% of what they had been making just one year ago. Obviously, this is not sustainable.
Press Release: Consortium lenders who use this LOS now have access to industry-leading doc prep and eDelivery
TORRANCE, Calif.—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced today that DocMagic is now available from within the Liquid Logics loan origination system (LOS) produced by bFocused. Liquid Logics is a cloud based LOS that is currently in use by a consortium of consumer direct lenders.
“We’re very proud of this integration effort and what it will mean to users of the Liquid Logics LOS,” said Steve Ribultan, Director of Business Development for DocMagic. “We’re integrating everything: document packages, compliance, eSign, e-delivery, e-appraisal, BorrowerMobile, and perhaps most important the delivery of electronic documents to borrowers. It is a seamless integration that allows lenders to check compliance, generate document packages and deliver them to borrowers electronically from within their “system of record”.
Join us Tuesday, February 11th, for a FREE DocMagic webinar:
Mobilizing the Borrower's Experience
At DocMagic, we think it’s critical for borrowers and lenders to communicate. That's why we’re so excited to introduce BorrowerMobile, an application designed for your borrower's tablet or smart phone!
Borrowers can use their mobile devices to easily clear loan conditions, review, share and eSign documents, check loan status in real-time, and schedule important events, like appraisals, directly to their calendar… all with the touch of a finger.
■ Close more loans… and close them faster
■ Provides real-time loan status
■ Integrates with any loan origination system (LOS)
■ Secure and encrypted document delivery
■ Fully-integrated eSign technology
Space is limited. Reserve your seat now by clicking this link.
New interface is tightly embedded in OpenClose’s LOS with full QM compliance
TORRANCE, Calif.—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, and OpenClose, an enterprise-class end-to-end loan origination system (LOS) provider, announced today that the two companies have established a new seamless integration. The integration allows users to access DocMagic’s services, including its full compliance suite for QM and High-Cost loans, without ever having to leave OpenClose’s LOS.
“Both DocMagic and OpenClose are very progressive, innovative technology companies that have engineered true software-as-a-service (SaaS) applications, which work very well together,” said Dominic Iannitti, CEO of DocMagic. “We have many clients in common that can take advantage of our robust document system, eSigning and eDelivery functionality from within OpenClose. Establishing a tight, seamless integration with the LOS platform is a best practice that will serve our customers well.”
Join us Thursday, November 7th for a FREE webinar:
7 Myths of Document Preparation and How to Avoid them.
Not all doc prep companies are the same…far from it! Join us for this informative and entertaining FREE webinar and learn the truth behind some common document preparation myths:
1. All document preparation companies are the same.
2. My LOS provides compliant disclosures for free.
3. My closers know what documents are needed.
4. There’s no real value in eSigning my documents.
5. I’m already complying with Dodd-Frank today.
6. My processors catch data entry errors.
7. I’m with a bank or credit union and predatory lending doesn’t apply.
Following the housing crisis, disclosure issues have been brought to the forefront and tackled by regulatory changes. As a result, mortgage professionals have been adjusting their procedures to ensure that their businesses comply with current requirements. With more disclosure changes in the pipeline, now is the time for mortgage originators and lenders to review if their technology is adequate to deal with potential changes.
This past November, the Consumer Financial Protection Bureau (CFPB) closed the comment period on a proposal that introduces an integrated disclosure rule to replace disclosure forms currently required by the Truth in Lending Act and the Real Estate Settlement Procedures Act (RESPA). It’s not clear when the final rule will be published, but there are expectations that it will be this year.
When these changes take effect, mortgage professionals should ensure that they have the proper technology in place to comply with new disclosure requirements. If the new rule goes into effect as it is written today, many changes will take place, and most significant will be the three-business-day closing-disclosure rule. This rule requires lenders to disclose the final closing cost through a new closing- disclosure form at least three business days before borrowers close on the loan.
Many in the industry are wary of the potential closing delays associated with the implementation of this new rule. Regardless of whether or not these concerns are warranted, mortgage professionals must focus on how to comply in a manner that benefits consumers — without unduly disrupting the normal flow of businesses.
DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance and eDelivery solutions for the mortgage industry, is excited to announce the launch of BorrowerMobile, an interactive application that turns any tablet or smart phone into a seamless communication tool for borrowers and lenders.
Today's borrower is on the go and the mortgage loan process needs to be dynamic to respond to this accelerated pace. Communication takes place at any time... and from anywhere, and now with BorrowerMobile the loan process can too. Lenders simply invite borrowers to download the BorrowerMobile application and the system establishes a direct communication link between the lender and borrower, allowing all parties to interact and share information from anywhere -- communication is instant, seamless, and completely secure.
By Steve Ribultan, director of business development, DocMagic Inc.
Despite the recession’s lingering effects on lenders and the vendors that serve them, many options remain for loan originators in search of good technology. For instance, there still are many great loan-origination systems (LOS) on the market. Although this is a great benefit to mortgage businesses in one way, it’s a problem in another: Despite the efforts of ambitious technology vendors to provide end-to-end solutions, every LOS on the market must interface with other technologies to get the loan from application to the closing table.
Studies have indicated that most originators are in the market for a new LOS about every five years. That means that, for all but the largest lenders in the business, institutions are ready to try something new about twice a decade. That rate may have slowed for existing lenders during the downturn, but the number of new lenders that have come into the space over the past few years has brought the average back to its norm.