E-Disclosures Help Servicers Modify More Loans

Wolters Kluwer Financial Services here released Disclosure Manager with the intent to automate the point-of-sale, but now realizes that those lenders that have adopted e-disclosures can now extend that same technology to do loan modifications.

Disclosure Manager interfaces with a lender's existing loan origination system and receives borrower data from the LOS, eliminating any redundant data entry in the process. The platform then populates the data into its document packages using a content management engine that ensures the correct compliance content is assembled based on regulatory, jurisdictional and specific lender requirements.

Then, to electronically deliver packages for the lender, the platform provides secure e-delivery, which quickly and securely transports the document packages to borrowers in a lender-branded workflow. This PKI-encrypted delivery method allows for bidirectional communication between lender and borrower, including the ability for a borrower to e-consent or e-sign the disclosure documents based on specific lender workflow requirements.

When a customer chooses to opt-out of electronic delivery or does not respond to the electronic delivery request within the required timeframes and printed disclosure packages are necessary, the e-delivery mechanism sends the document packages to a secure and SAS 70-certified print fulfillment center, where the packages are printed and mailed to borrowers. Proof of the mailed package is then returned back to the lender's LOS for RESPA compliance and audit reporting.

"We've seen a continued push to automate. The concept of Disclosure Manager and bringing all our products together is very compelling," said Art Tyszka, director of document services at Wolters Kluwer. "We started with e-disclosures and we're now doing a lot of work around loan mods. Servicers can use this product to generate load mod docs while they have the borrower on the phone so they can e-sign. We will paper out for them if the borrower opts not to e-sign. This is a good example of the evolutionary move toward full e-mortgages. However, it is happening and it's happening today."

"You see larger lenders like Wells Fargo develop their position around e-disclosures and get vendors to opt in," added Ruth Thompson, senior principal, mortgage document preparation at Wolters Kluwer. "The large lenders are paving the way. We're seeing a large demand for e-disclosures, which is very positive. Rapid implementation and a low upfront cost are big selling points. That's a big plus for adoption. The 'e' adoption and SaaS is the trend. We expect the adoption curve to move closer to the MISMO definition of what an e-mortgage is."

And the fact that the technology has both origination and servicing application is helping lenders who also service loans to keep up with volume on the servicing side without investing in new technology. "A lot of resets are going on and will start again this fall," noted Mr. Tyszka. "It's terribly inefficient to get these communications out to the borrower using paper. The minute the borrower wants to change the terms to stay in the home it's instantaneous with Disclosure Manager.

"Servicers are certainly taking technology used on the origination side and applying it to servicing. Everyone is looking to improve the process overall. Disclosure Manager can be used internally as a business process outsourcing tool. In this case the servicer could give us an Excel spreadsheet and use Disclosure Manager to hand that work over to us. We'll do the data entry, generate the docs, etc. We're committed to this space and will invest further here. We're always looking for acquisitions." (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/

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