Is an “e-mortgage” and “digital mortgage” the same thing?
While sometimes used interchangeably (even among mortgage professionals), e-mortgage and digital mortgage are not the same. A digital mortgage refers to every step and tool that is involved in processing a mortgage — from acquisition to funding — and all done digitally.
According to Fannie Mae, certain terms have certain meanings and e-mortgage is one of those terms. Here is the breakdown of some terms you might hear when talking about digital mortgage, according to Fannie Mae:
e-Closing – Refers to closing a mortgage where the required closing docs are accessed, presented, and signed digitally.
e-Mortgage – Refers to the closing docs (such as the Promissory Note) that are created, accessed, presented, executed, stored, and transferred digitally.
e-Notary -An authorized notary that can perform digital notarial acts in conformance with the law.
e-Note – Often viewed as the most important as it’s validity is critical to the holders’ ability to legally enforce the eNote.
e-Signature – Is a digital sound, symbol, or process attached to a record and adopted by a person with the intent to sign the document.
e-Vault – An electronic storage used for digital notes. It provides secure certification, storage, and status reporting for signed mortgages.
Each of those processes (plus many more) were critical in bringing a completely digital mortgage into reality, but individually, they do not make a digital mortgage. Read this article to learn more about the key advances that helped to shape the digital mortgage landscape.
Besides the obvious elimination of paper, what are the actual benefits of a digital mortgage?
Elimination of paperwork is a significant benefit, and can’t be emphasized enough, but that’s only the beginning! Even after the paperwork was completed, there remained the need to scan, input, record, fax, email, or otherwise electronically transfer the mortgage information — multiple times.
Digital mortgage shortens the road to approval to just a few days and the savings can be upward of $1,000’s per loan!
With a true digital mortgage, the information is accurately populated, stored, and preserved for a seamless and instant transfer. The time and money savings comes from digitally linking your bank accounts, credit data, or employment data directly with your mortgage application during the application intake or later. This is part of the day 1 certainty technology
Furthermore, having any additional documentation stored in a digital cloud, accessible to every stakeholder — all working together virtually to process, underwrite, and fund the loan will help tremendously. Your borrowers will also be able to track receipts, approvals, and requests in real time. And in an age where digital notifications are standard for package deliveries, doctor appointments, and flight delays, 2019’s borrower expects nothing less from a digital mortgage.
Does a digital mortgage take the place of a Mortgage Broker?
No matter the industry, from retail to entertainment, there is a fear that digital advances are going to eliminate the human element. But as we’ve learned from all of these industries, digital change marks the beginning of tremendous growth.
Online shopping opened the doors for the likes of Amazon. And brick-and-mortar retailers like Walmart were smart to adapt quickly, which led them to astronomical success.
Music and film feared that no one would purchase their media when so much available for free online. Instead, the digital age brought a wider distribution and more opportunities to market their product. Digital brought a boom instead of a bust.
The same holds true for the mortgage industry. Digital mortgage tools level the playing field for the independent broker, allowing them to compete with big lenders. Digital mortgage also amplifies the brokers potential, helping them to close loans faster with less cost per loan.
Which digital mortgage tools should every broker have?
That depends on many factors, such as which platforms and tools you are currently using, what’s working for your brokerage and what’s not working. Business position, the size of your team, and how much you’re willing to invest in growth are other factors to consider when shopping for digital mortgage tools.
Implement a mortgage website and digital 1003 now, and add branded mortgage app later. Or maybe you’re ready to implement a mortgage POS system to give your team and borrowers a true digital mortgage experience. The choice is yours, and we’re here to help. Click here to set up a live demo and free trial.
