First FHA loan closed electronically, all but the note generated and signed electronically
TORRANCE, Calif.—March 17, 2014—DocMagic, Inc., the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry, announced today that its eSign compliant loan documents were chosen by Stewart Title® and Mountain America Credit Union to complete the industry’s first ever eClosing of an FHA loan, in conjunction with Stewart’s eClosingRoom®. DocMagic is the exclusive licensee of patent rights that enable its eSign technology.
FHA’s recent announcement supports the ability to eSign all documents with the exception of the note. The announcement states that the agency will begin accepting electronically signed notes by the end of the year.
“eSign has never just been about the upfront disclosures,” said Tim Anderson, director of eServices for DocMagic. “That’s where we started and we’ve done that for a long time now. Our ability to use this technology to help lenders realize a fully paperless mortgage is the real story here. There really is no excuse now not to provide this service to borrowers, who have been demanding it for some time.”
Anderson added that better compliance risk management is an additional benefit of paperless lending. “The ability to provide electronic proof as evidence of compliance will be critical for lenders in the future,” Anderson said. “When documents remain electronic, it’s easier to create and maintain an audit trail that can support the lender during a bank audit.”
“Being the first lender in the country to conduct a live eClosing of an FHA loan and doing it with Stewart’s eClosingRoom platform powered by SureClose® and DocMagic’s eSign enabled compliant loan documents is truly an exciting event for us,” said Amy Moser, Vice president and mortgage services manager for Utah-based Mountain America Credit Union. “eClosing gives us a tremendous competitive advantage because it enables us to provide superior customer service to credit union members who demand an efficient loan experience.”
Nancy Pratt, director of eStrategy for PropertyInfo, the technology division for Stewart Title, added, “Our eClosingRoom platform enables lenders like Mountain America and title agencies not only to eSign, but also to eNotarize and eRecord the closing package in the title office, delivering a fully paperless eClosing experience for all participants. Stewart had its first electronic closing in May of 2005. Having the first FHA loan electronically closed in our system truly is a milestone for the mortgage industry.”
About Mountain America Credit Union
Mountain America Credit Union has more than $3.7 billion in assets and serves more than 448,000 members, wherever they are, through online and mobile banking, 76 branches in five states, and provides access to more than 30,000 ATMs and 5,000 shared-branching locations nationwide. With credit union roots dating back to the 1930s, Mountain America has become a tradition for many members, offering a variety of financial products and services for consumers and businesses, including savings accounts, auto loans, checking accounts, mortgage loans, business checking, student loans, SBA loans and retirement options. Visit www.macu.com for more information.
Stewart Title Company is a wholly owned subsidiary of Stewart Information Services Corp. (NYSE-STC), a customer-focused, global title insurance and real estate services company offering products and services through our direct operations, network of approved agencies and other companies within the Stewart family. Stewart provides these services to homebuyers and sellers; residential and commercial real estate professionals; mortgage lenders and servicers; title agencies and real estate attorneys; home builders; and United States and foreign governments. Stewart also provides loan origination and servicing support; loan review services; loss mitigation; REO asset management; due diligence for capital markets; home and personal insurance services; tax-deferred exchanges; and technology to streamline the real estate process. Offering personalized service, industry expertise and customized solutions for virtually any type of real estate transaction, Stewart is the preferred real estate services provider. More information can be found at http://www.stewart.com/news, subscribe to the Stewart blog at http://blog.stewart.com or follow Stewart on Twitter @stewarttitleco.
DocMagic, Inc. is a leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry. Founded in 1988 and headquartered in Torrance, Calif., DocMagic, Inc. develops software, mobile apps, processes and web-based systems for the production and delivery of compliant loan document packages. DocMagic guarantees and warrants that all agency forms are up to date and in compliance with GSE requirements. The company's compliance experts and in-house legal staff constantly monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit www.docmagic.com.
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