An increasing number of mortgage lenders and technology vendors are developing plans for a "paperless mortgage." And while we think trees will continue to be sacrificed to support the mortgage industry for years to come, clearly momentum is growing to eliminate as much paper as possible for the lending business.Anyone who's ever spent months trying to track down "trailing documents" associated with a loan closing or servicing sale knows how important this is to the industry.
Paper-free financial transactions promise to reduce error rates, eliminate storage hassles and make retrieval of documents and information about a loan account easier than it has ever been before. While much of the paperless mortgage debate has focused on loan origination, it's servicers who may be the big beneficiaries.
And so many technology vendors and loan servicers are eager to jump on the bandwagon. But to make paperless servicing work, lenders will have to embrace MISMO standards and become comfortable changing business processes to facilitate the use and transmission of XML documents. Paperless servicing only works if servicers and their business partners are on the same page when it comes to adopting technology.
We hope the enthusiasm for paperless lending will not die down. The mortgage industry, once derided as slow to adopt technology change, has a chance to pioneer a new kind of business environment.
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