Flagstar Goes Live With E-Mortgages

Livonia, Mich.-based Flagstar Bank has gone live with mortgage closings using electronic signatures, and was preparing to sell its first e-mortgage the afternoon of Oct. 4.The most common misconception about e-closings is that the e-signed closing requires additional hardware, but Flagstar is doing a click-sign that can be done with an everyday computer mouse. Beyond the benefits that go along with e-signing itself, as part of post-closing, Flagstar automatically pre-populates the necessary data to answer all needed post-closing questions. Most of those questions are cleared automatically by the data transfer itself and come up with a "cleared" message to the post-closer. This eliminates the need for manual post-closing and mitigates the chance of buybacks by the investor. Flagstar says it is committed to e-mortgages as a business philosophy and will start small, but quickly ramp up to doing heavy e-closing production.