Due to the credit crunch and associated economic slowdown, originators and lenders must do everything within their power to standout among their competitors. Rates and fees are no longer selling points that can ensure one’s viability in the mortgage industry. Electronic lending is a way for mortgage professionals to make the borrower’s experience as easy as possible in order to gain their trust and their ongoing business.
Take a moment to imagine yourself as a potential borrower, unfamiliar with the details surrounding a mortgage. You’re stressed at the thought of relocating or refinancing your home while balancing everyday obligations of work, family and having a life. This can be quite an overwhelming process! Just think of the value borrowers would see in you if you enabled them to review and sign forms in their own homes, at their own pace, without having to hassle with shipping them back to you AND ultimately getting funded faster. Not only would this make their lives easier, it would automatically differentiate you from the competition!
Fortunately, there are electronic mortgage systems being implemented by lenders across the country that enable disclosure documents to be emailed to the person applying for the loan, so they can be reviewed, signed and emailed back to the originator.
Applicants receive an email containing a link that brings them to a site that verifies their identity with a series of questions and allows them to review and sign the documents online. If the applicant cannot finish the process at once, he or she can log out and return later to continue. This enables borrowers to complete their disclosures without having to take time off of work or divert from their usual routine. Not only does this provide an easier, more secure way of applying for a loan, it also saves the applicant time and shipping costs that can run anywhere between $15-$25. Furthermore, the time it saves allows them to get approved faster!
“Any borrower with basic computer skills can easily navigate and sign loan documents with our system,” said Andrew Dubinsky, president and CEO of Encomia, a Houston-based provider of end-to-end eLending technology. “We’ve found this to be easier for borrowers by making the process much more convenient. It ultimately allows them to receive funding much more quickly because they do not have to wait on the postal system to complete their transaction.”