Mountain America Credit Union has partnered with Pavaso to implement a new digital collaborative closing process to provide a better experience to members applying for mortgages called QuickClose.
The $4.8 billion West Jordan, Utah, credit union teamed with Pavaso, based in Plano, Texas, for the CFPB's eClosing Pilot program in August 2014. When MACU and its vendor partner created QuickClose, objectives included reducing confusion, consolidating communication channels and providing members more time to review the entire closing package.
In addition to internal training, Mountain America and Pavaso worked together to bring on 30 title companies in Utah and Idaho to understand their role and requirements in the process.
After implementation, stakeholders of the purchase transaction were brought together in the same online portal and members have one spot to communicate with everyone. Borrowers also receive all documents related the transaction digitally.
The closing process takes place in as little as three weeks, including delivery of the entire closing package to members three days before the date of their closing. Once members went through the digital closing process, more than 50% of the actual closings occurred in less than 30 minutes, with quite a few of those occurring in 15 minutes or less.
"Mountain America is committed to making it easy for our members to do business with us," said Amy Moser, VP of mortgage services at Mountain America. "QuickClose lets borrowers review the closing documents prior to the closing. This saves time, reduces confusion and improves the closing experience for the member, the real estate agent, the escrow officer and the lender — everyone benefits from this best practice."
Delivering the Closing Disclosure three days prior to closing is the new TRID regulation; however, digitally delivering the entire closing package along with the new Closing Disclosure is Mountain America's "gold standard."
Once the loan is closed, documents are quickly transmitted back to Mountain America for funding. Funds could then be released and the transaction could fund and record on the same day because the digital process ensured that every document had been reviewed and signed correctly. "Any process that can improve speed and accuracy and have a positive impact on member service is invaluable," MACU said.
The post-closing savings for Mountain America is evidenced in the reduction of four full-time employees that were needed to ship files to investors. Files are now fully in a digital format. Before, documents had to be scanned and compiled into a digital file.
