Below is an excerpt from a DS News article published August, 9, 2022 featuring DocMagic's Director of Enterprise Solutions, Chris Lewis on the benefits of eNotes and eVaults for lenders, services, investors, and warehouse banks.
Chris Lewis, as Director of Enterprise Solutions for DocMagic, focuses on helping lending organizations of all types digitize their mortgage origination, closing, secondary, and servicing processes when it comes to going “e.” DocMagic is a provider of mortgage-based compliance, document generation and mortgage digitization solutions, including eSign, eDelivery, eNotary (RON), eNote, and eVault solutions.
“With the industry truly going digital and eNotes being leveraged on a wider scale, servicers must have an eVault solution to service those notes registered electronically with MERS. This is where DocMagic is having a lot of success,” Lewis said. “The bigger challenge for servicers to overcome relates to the changes in operational workflow when using eNotes. The eNote is much more efficient, but has a completely new workflow as compared with the paper note. Custodial practices will change, and the large-scale physical shipping, loading, and management of paper notes will be eliminated. Since excising paper note management process doesn’t correlate over to the new eNote digital workflow, for the largest servicers, this new workflow can take some time to implement at scale. However, once completed, the ROI and risk mitigation effects are substantial. The eNote cannot get misplaced or destroyed and requires significantly fewer resources to manage over the life of the loan.”
As for what the future holds, Lewis notes that continued usage of tech enhancements such as remote online notarizations (RONs) will further advance the industry toward an all-digital process. Further supporting Lewis’ sentiment, the U.S. House of Representatives recently passed bipartisan legislation, HR 3962—the Securing and Enabling Commerce Using Remote Electronic (SECURE) Notarization Act, designed to update and modernize the notarization process in and outside of the United States. HR 3962 will allow every notary in the U.S. to perform RONs, as well as allow signers located outside of the U.S. to securely notarize documents.
“As eNotes continue to be adopted by some of DocMagic’s largest clients, the next level of eClosing will be a complete RON closing,” added Lewis. “DocMagic is confident that, in the coming years, RON eClosings will be the common closing practice of the most successful and largest originators. Consumers will come to demand the efficiency and safety of the remote closing. We believe Federal Law will pass, allowing for 50 state RON acceptance along with full adoption of the nation’s title insurance underwriters, as well as full adoption at the county recorder level. Lenders that are working today to include the eNote in their process and replace the paper custodial workflow with a digital experience will be the ones who are ready to take RON eClosing to full scale. When lenders, services, investors, and warehouse banks all start utilizing eNotes, the industry will achieve significant operational optimization. It will take time, but it’s on the horizon.”
To access the full article, click here.