By Bonnie Sinnock
Regulatory changes continue to largely drive automation for those on the production side, especially when it comes to documents, according to executives at DocMagic Inc., Carson, Calif., which does business as Document Systems Inc.
Don Iannitti, president of DSI, told MT reg changes continue to be "the big focus" in his business.
Michael Morford, director of business development and integration at DSI, said the company seeks to help with this challenge by making sure that if clients are subject to audit "there are no concerns." DSI has more than a dozen people devoted solely to compliance, he said.
The range of doc services goes from identifying the loan file through auditing the data to production of the documents. Compliance comes in when it comes to the qualification of the data, Morford said. "We want to make sure when they do draw the documents, they are compliant," he said. This is designed to help prevent post-closing issues.
Reg changes can drive clients to use technology, Morford said. The Mortgage Disclosure Improvement Act, for example, has a provision in it where a lender cannot charge a fee until the borrower has received the disclosures. "These can be delivered in a matter of seconds (by e-disclosure)" compared to a few days by mail.
Thus e-mortgages have gained momentum within the production-focused doc services DSI provides. The company, originally known perhaps best for closing documents, today offers a wider range of docs that extends from prequalification all the way through to secondary market documents like servicing transfer notices or goodbye letters.
Hard copy docs do persist, but "You want to at least [convert paper into electronic form] and create an electronic folder for it [whenever possible]," Morford said.
The company has interfaces with loan origination systems that transmit data to documents, and through its new DocMagicXL product, has been taking on responsibility for the legwork and cost involved in integrating with LOSes that agree to make enough data available to eliminate most rekeying. When DSI leverages its data transformation services so the LOS partner does not have to do the data mapping, it results in "a very fast time to market," Morford said.
DocMagicXL creates an automatic link with the client's LOS. Generally there is no additional data entry required, but if there is the system prompts the user for it and makes it accessible through a one-button click, Iannitti said. DSI has taken steps to protect data as it flows from one party to another. "There's no worries in terms of system integrity," said Iannitti. This is true in terms of both B2B and B2C delivery authorization and receipt, Morford said.
Docs can be viewed as PDFs through a "management console" that is invisible to the borrowers, but provides secure access to those on the business side that need access to the signed docs, Iannitti said. "Any level of security can be put on by the user," he said. Data can be password protected, a log of access to the docs available can be kept, and a branded invitation to can be sent to the borrower that allows the borrower to consent to receiving e-docs. Borrowers can be given the option to "click sign." Docs also can be managed so that certain ones can be "wet signed" due to users' preferences or legal requirements, Iannitti said. The system can "print just those pages that require an ink signature," Morford said. Originators can still manage these relatively efficiently by allowing them to be printed out with bar codes that accommodate imaging.
While regs often are the driving force behind docs offered, any doc could be delivered to the settlement partner or to the borrower, Morford said.