Some lenders pay an intermediary, such as a law firm, processing center or fulfillment company, to generate their mortgage documents and conduct print fulfillment services.
However, lenders can cut out the middleman and draw their own docs — at the exact same quality and at a fraction of the price — by using DocMagic’s document generation solution for initial disclosures and closing documents.
“I think some lenders are hesitant to take on that doc gen burden,” said Aimee Eyre, a sales executive at DocMagic. “But drawing their own docs is easier than they think, and it would save them a lot of money.”
Another reason that lenders use a fulfillment company is because many lack an in-house compliance expert and the intermediary companies offer compliance checks as part of their service — but so does DocMagic’s doc gen solution, which includes an automated compliance system designed to catch any errors and issues before documents are processed.
In fact, “a lot of fulfillment companies that use DocMagic advertise that they’ll handle the compliance piece for the lender, but they’re actually using DocMagic’s compliance system,” said account executive Shandi Smith.
Smith and Eyre often get calls from lenders who realize their fulfillment company is using DocMagic for document generation.
“They say, ‘I saw your logo in the bottom corner of the box and wanted to talk to you directly,’” Eyre said.
To reiterate, there are a host of advantages for lenders who draw their own docs, including:
- Money: What DocMagic’s document generation clients pay to draw a doc gen set is a fraction of what they have to pay to the intermediary companies to do it for them.
- Time: When lenders use DocMagic, it takes less than 10 seconds to generate a doc set. When lenders go through an intermediary, the process is out of their hands; they have to get in line and are at the mercy of whatever time frame the fulfillment company sets, which could be as much as two to three days. By using DocMagic’s document generation solution, lenders have the power to pull documents on their schedule, putting them firmly in control.
- Compliance: DocMagic’s document generation solution comes with built-in compliance checks, supplied by an expert team that’s constantly monitoring the regulatory landscape to ensure the document library is evergreen. As Smith noted, in many cases, lenders are already getting DocMagic’s compliance service if their fulfillment company is also using DocMagic.
- Ease: Some lenders worry that generating their own documents is a complicated process. That couldn’t be further from the truth. “As soon as you show lenders a demo, they realize that it’s not as hard as they thought it would be,” Eyre said. Smith added that after lenders are trained, they become extremely proficient at pulling their own docs.