Origination Technology Can Help Servicers Too
Technology is often viewed in small buckets. For example, electronic signatures are for disclosures and closing documents only. That's not true. Many technologies have a lot of applications in both origination and servicing.
"Because of the need to be 'e' you would not always see technology on the front-end used on the backend because it was such a specific need," said Kelly Purcell, EVP of sales and marketing at electronic signature vendor Wave eSign Systems. Wave historically worked on the front-end, but is now working with servicers to do e-signatures on loan modifications.
"Taking a transaction and making it electronic is a very horizontal process. Having said that, you need to understand the compliance impact. My point is that we can take a compliant e-signature and e-vaulting technology along with e-consent, which is extremely important, and apply that to a backend/servicing transaction." Similarly, Wolters Kluwer Financial Services' Document Services Platform is being used by LoanCare Servicing Center, Inc., a subsidiary of LandAmerica Financial Group, Inc. to help its mortgage servicing clients modify loans for distressed homeowners. LandAmerica offers these financial institutions a wide variety of subservicing solutions, including the ability to perform loan modifications.
By using Wolters Kluwer Financial Services' Document Services Platform, LandAmerica can build loan modification document packages for its servicers that are compliant with investor requirements. LandAmerica can also securely and electronically deliver the packages on behalf of servicers to borrowers for review, e-consent or e-signature. Doing so allows LandAmerica and its servicers to modify loans in a day or two versus a week or more. And it helps them realize dramatic cost-savings in the form of reduced printing, handling and mailing costs.
"The faster we can move in modifying a loan, the greater the chance a borrower will get to remain in their home and the servicer can retain revenue from that loan," said Gene Ross, president of LoanCare. "Automating the loan modification process with Wolters Kluwer Financial Services' Document Services Platform helps us accomplish both of these objectives."