With more than 8% of mortgages now in forbearance, industry experts are exploring ways to give an added impetus to digitizing the loan-modification process.
Lenders that made significant investments in technology in recent years reported better metrics than other players in several areas, such as origination costs and productivity.
Digital mortgage closings are getting renewed attention with the industry forced into social distancing to contain the coronavirus. Remote online notarization can help, though it’s not allowed in all states yet.
A lender provided e-signed document authentication from DocuSign and testimony from a compliance officer, but that wasn’t enough to convince two courts that the borrower had actually signed the document.
Officials from the Federal Reserve have warned about redlining and steering risks from digital targeted advertising, though it may be the best way for lenders to market their products.
Adoption of eNotes has been limited, though activity surged in 2019 led by Quicken Loans and warehouse lenders. There are benefits for lenders willing to deal with the problems that accompany electronic processes.
The intensity of information technology adoption at banks played a role in loan performance during the financial crisis, according to a working paper by the International Monetary Fund.
Application programming interfaces have the potential to create efficiencies in the mortgage industry, though standardization is key, according to leaders spearheading an effort at MISMO.
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