By Evan Nemeroff
DocMagic has partnered with Mountain America Credit Union to provide paperless loan closings to current service members as well as veterans.
Mountain America Credit Union closed its first electronically signed FHA mortgages in March under the Federal Housing Administration's new e-sign policy. Five months later, the two companies worked together again to complete an e-closing for a loan insured by the Veterans Administration.
This transaction is being considered the first time a VA loan was closed electronically, according to Torrance, Calif.-based DocMagic, which provided the electronic functionality for the disclosures and the closing documents. The VA announced last year that it would start accepting e-signed loan documents.
With electronic signatures, military members and their families can complete a transaction remotely rather than rely upon paper-based disclosures and documentation.
Electronic signing is expected to dramatically streamline industry operations in the future, as the process takes about 15 minutes for each loan compared to the hour-long process of ink-signing 100 to 200 pieces of paper on the day of closing.
"The government agencies involved in the home finance industry have now all confirmed that eSign is an important technology for the future," said Tim Anderson, director of e-services for DocMagic.
"We congratulate Mountain America for making it easier to do business with them than their paper based competitors."