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Mon, 08/31/2009

By Anthony Garritano, Editor, Mortgage Technology Magazine

In total, 59% of 22 respondents don't think electronic mortgage will go mainstream by next year. However, even if e-mortgages don't go mainstream, adoption will certainly rise as it has every year. As that adoption climbs it will eventually be impossible to compete without going electronic.

Another drive force will be new regulation. For example, MDIA is a huge catalyst in the process of furthering market wide e-disclosure adoption, according to Dominic Iannitti, president and CEO at doc prep vendor DocMagic. "E-disclosures provide a means to potentially eliminate the 72-hour waiting period that lenders must wait that constitutes the assumed waiting period until the borrower receives their disclosure document via mail.

"Furthermore, since doc preps like us are generating the APR for both initial disclosures and closing docs, we can audit and test the values and compare the dates to let the lender know if the loan is within tolerance or not."

And every year new faces enter the e-mortgage landscape. "We started with electronic delivery and it has worked out well," shared Christopher Rosati, senior vice president and chief operating officer at The Trident Group. "From there, we rolled it out throughout our whole process. We're now paperless. There's no time like the present. With the regulation, the need to turn warehouse lines, the need to be more efficient, the need to provide better customer service, there is no reason not to jump in. And in doing this we realized that we needed a base platform to build on, which is why we chose BlitzDocs. It was turnkey and we were up in 90 days with our platform. We see e-closings as the next step for us.

In fact, thousands of new e-notes are registered on MERS every month. "We are generating Category One SMART Docs for delivery to Fannie Mae as we speak," said Chris Christensen, associate at PeirsonPatterson. "The e-mortgage setup is three pronged. You have to be approved by the investor, you have to be set up with MERS and you have to line up your title partners. Title companies are willing. They want lenders to do e-closings. We're doing hundreds of e-sign transactions a day. You can see that in the tracking in the MERS eRegistry numbers.

"We had an executive say that his e-closing was a celebration because it memorialized the closing. The best advice I can give lenders is to try it before they judge the experience. It works."