In a mortgage market that is unpredictable at best, lenders can tap technology to lower processing costs, improve loan data quality and provide better pricing and service to borrowers. Going paperless – with all critical documentation created, executed, transferred and stored electronically – has another benefit: helping the mortgage industry go "green."
Paperless mortgage transactions, including the electronically signed mortgage documents known as eMortgages, offer a fundamentally better way of doing business. We digitize data in countless other applications in our lives, even pay our bills online, so why not take advantage of similar efficiencies and savings in processing mortgages?
eMortgages can save you time, offer better quality control and expedite closing
Paperless mortgage technology and processes can create powerful competitive advantages for credit unions. First and foremost, paperless mortgages provide better customer service with fewer errors, faster closings, and increased transparency to the borrower/member. Data are entered only once, reducing processing time and ensuring better control of the closing process. Paperless mortgages can be executed faster (traditional mortgages can take three days to process versus minutes for electronic transactions) and more cost efficiently. Borrowers receive eMortgage documents immediately on their computers.
eMortgages can provide a secure alternative
The data integrity of eMortgages is protected with the use of a tamper-proof digital seal. eMortgage technology is based on widely accepted industry standards. Many technology providers have readily available solutions built to those standards.
eMortgages can reduce costs
You can realize significant savings with your first eMortgage closing with virtually no capital investment. Courier fees are eliminated and loans can be sold to Fannie Mae the same day they close, boosting liquidity for the lender. This savings will positively impact your borrowers' bottom line and continue to emphasize credit unions as the "low closing-cost" provider of mortgages.
eMortgages are becoming standard practice
Admittedly, the paperless mortgage transaction was slow to take hold in the early days. Fannie Mae bought the first two eMortgage loans in 2000. Since then, the industry has moved from pilot efforts to full-scale production. Most mortgage lenders have indicated to us that they have either started or expect to start incorporating e-signing technologies in the near future.
eMortgages help the environment
Going paperless can have important environmental benefits by reducing the mortgage industry's significant paper usage. Based on an a sample year, in which 14.5 million mortgages are produced, each requiring approximately 100 pages of paper (about one pound) and copied three to five times; those mortgages consumed the equivalent of 22,000 to 36,000 tons of paper in a single year. That translates into as many as 620,000 trees as well as some 340,000 barrels of oil used in paper production. With paperless eMortgage technology and processes, the industry takes an important step toward reducing its carbon footprint.
More information about eMortgages is available at https://www.efanniemae.com/sf/technology/commitloandel/emtg/aboutemtg.jsp#