Article written by Stephanie Onofri
The simple answer? We’re not really sure. In a business in which client satisfaction drives the “cheddar-making” machine, one really begins to wonder why more mortgage businesses aren’t making the switch toward dramatic budget cuts and faster, more-efficient ROIs.
Almost any workflow, compliance, or time-related issue that undermines mortgage closings, underwriting, assignment, or the foreclosure process can be lessened, if not entirely eliminated, by implementing electronic document solutions. So why the delay?
According to an article in American Banker dealing primarily with e-signatures, the Federal Housing Administration and Internal Revenue Service did not allow certain lenders to switch their mortgage documents to electronic records; the article delineated the concern of many Mortgage companies, stating that unless e-signatures could be available for all products, the partial switch would only complicate the already tedious paper process. But according to the same article, these restrictions are beginning to subside, and hopefully the trend will allow for more electronic solutions than simply e-signatures – granted that companies are ready to take that step…
“The initial concern of many companies who are new to all this, is that it might require more specialized labor for the implementation and maintenance of the products, and that it might actually take up more of the department’s time,” explains DataBank’s Solution’s Consultant Tiffany Brunett in regard to making the switch to paperless solutions, “When in fact, the expenses and time saved add up almost immediately, often within the first year you’ve made your money back.”
So the question still begs, why aren’t more companies taking the leap?
The few leaders in the business who have adopted an ECM solution for their records management have benefitted from:
- Automated Auditing – Auditing is painstaking and in spite of best efforts many documents are still subject to human error, and therefore, to the risk of breaking regulatory compliance. ECM can automate audit processes, removing the risk of human error and completing the task at a much faster rate.
- Remote access from any location – No matter where the lending or underwriting process takes you, access to scanned documents is available from any location through any computer or smart device.
- Secure access to system documents – Any software solution allows a measure of control over who can view certain system documents and monitoring the activity of these parties.
- Decreased paper and storage costs – The typical loan file is a few hundred pages in length. By converting these files to electronic formats, the same amount of paper storage is no longer necessary.
- Simultaneous Viewing – Within a lender’s workflow, various parties can view the same document, reducing the time it takes to process a closing.
There is much more to be gained by electronic document solutions than e-signatures. As industry leaders continue to adopt cutting edge paperless solutions and getting ahead of the game, the switch to ECM will become a crucial part of keeping up with the growing competition. For more information. download our Ultimate Guide to ECM below!