The paperless and electronic signature technology that's been slow to catch on in the mortgage origination business is finding a place in the loss mitigation arena, according to speakers at a session of the Mortgage Bankers Association Mortgage Servicing Conference.
Vendors like Lender Processing Services are taking their e-signature and process workflow technology and adapting it for loss mitigation purposes, Jeff Haggett, the senior vice president of national sales integration at LPS subsidiary LSI, told the assembled group in Dallas.
One use is the execution of HAMP, or Home Affordable Modification Program, workout plans. The workflow technology ensures all the steps are completed in compliance with the federal government initiative, which provides cash incentives to industry participants that modify mortgages for distressed borrowers. Another benefit of the automated workflow is that when changes are made to the HAMP guidelines, the workflow can be easily updated to reflect the new policies. Borrowers are returning modification documents at rates as high as 90% when they e-sign and electronically transmit them to the servicer, instead of using postal services or fax machines.
Wells Fargo is one servicer that's already begun using workflow and e-sign technology in this way. The technology in place generates the modification documents, provides a workflow structure for employees to follow and includes e-sign options for borrowers. It's not in use across the board at Wells Fargo yet, but it's an ongoing process the servicer is pursuing with its technology vendor.
"We wanted to automate the process for how our loss mitigation docs are created and ensure a consistent process," said Gordon Workman, a business process consultant for Wells Fargo.
