Ask lenders what two issues they spend the most time dealing with, and the answer is often compliance and dealing with the large amounts of paper generated during the mortgage process.
Compliance regulations are constantly changing – and the burden of proving compliance is becoming greater, not easier. In the August issue of HousingWire, DocuTech’s COO Scott K. Stucky looks at the relationship between risk, uncertainty and security in the mortgage industry.
Scott writes, “In the mortgage industry, regulations are added that attempt to limit the risk to borrowers and lenders alike. These regulations may make loans less likely to default, but the cost of business increases. Any increase in cost is always passed on to the consumer.” Scott continues to look at the possible unintended consequences of regulations being finalized and reformed now, such as the QRM standards. Read the full article online at HW Focus – Originations Vol. 2, Issue 3 (PDF) or in the special Originations HWFocus found in the August issue of HousingWire.
On the paper front, ever since Congress established a legal framework for the validity of electronic signatures in 2000, the mortgage industry has dreamed of the day when borrowers would embrace a fully electronic process for mortgages.
The benefits are obvious – less paper, quicker closing times, enhanced digital tracking and easier file storage just begin the list. Yet more than a decade after the passage of the Electronic Signatures in Global and National Commerce Act (ESign) and Uniform Electronic Transaction Act (UETA), paperless mortgages are still a niche product.
Over the past few years, each new development, such as e-disclosure support, electronic file vaults and Web based loan origination systems (LOS), has brought the paperless mortgage one step closer to the mainstream. For many originators, however, the concept of moving to paperless mortgages might seem overwhelming. Scott outlines best practices and concrete steps lenders can take to embrace in the August issue of The Niche Report. Pick up a copy or read the August 2011 Niche Report Paperless Article as a PDF.