In my last blog, I wrote about my experiences at the Midland User Conference. Leading up to the MBA Annual last week I was invited to speak at two other user conferences, Data-Vision and Fiserv. What did they have in common? Lenders were engaged and all the talk was about e-lending.
I was proud to be asked to talk at the Fiserv User Conference about Kim Weaver being a finalist in Mortgage Technology magazine’s 2008 Steve Fraser Visionary Award category. I got an opportunity to talk about why we made her a finalist in front of her clients, which was great for me as a staunch e-mortgage cheerleader, to recognize someone that actually helped lenders like Flagstar Bank go live with full e-mortgages to both GSEs. To see who went on to win our 2008 Awards click
After I extolled her virtues, she went on to present her case to clients for adopting e-mortgages. Her presentation was entitled “eClosings — It’s Time to Act.” As always, Kim gave a very detailed argument for adoption. In her slides she detailed that cumulative e-notes registered on MERS as of the end of August 2008 exceeded 30,000. That represents a 82.57% increase from just January of this year.
MERS also offers an eDelivery service and the story there was more of the same. Total e-packages processed as of the end of August 2008 stood at over 22,000. That was a 96.92% increased from February of 2008. So, while the numbers are still small on both the eRegistry and eDelivery side, they’re ramping up very quickly.
The three pillars of paper-free lending according to Ms. Weaver are: all paper documents can be imaged on receipt using meaningful document names, key documents are now natively electronic, and automated handling, queuing and review on 100% of documents can be performed. The ROI can be calculated by the fact that lenders have more control over an e-document, the tamper-evident seal makes these documents more secure, the lender gets the fastest execution and return of documents, automated document delivery and quality control can be done on all documents, and e-notes can be sold into the secondary market instantly.
What shocked me most about this session was not the presentation — Kim is a master — but the audience participation after. There were several questions all asking how they as lenders should get started. The questions didn’t doubt the validity of the e-process or if it’s real or not, but rather centered specifically on how they as lenders could start realizing the benefits associated with e-mortgages. Lenders showed a real readiness to adopt. It’s happening.
The story at the Data-Vision User Conference was more of the same. While Fiserv offers an end-to-end solution, Data-Vision is more focused on segments of the overall process. Here’s how Data-Vision describes how its products fit within the e-mortgage process:
“For any e-lending initiative to be successful it must seamlessly integrate into your existing operations. Both LoanQuoter and RemoteDocs interface with all of the top loan origination systems. Start by Web enabling your origination channel with LoanQuoter. Take online applications quickly and securely; give consumers instant feedback on their application; and finally, use RemoteDocs to deliver your disclosures electronically and / or your final closing documents instantly and cost effectively.”
At the Data-Vision conference I was asked to give a state of the market address. While it was an honor to be their Featured Speaker, I have to say I learned more from them and their clients then I think they learned from my talk. More specifically, there was a lot of talk about electronic disclosures and the value of starting off electronic at the point-of-origination. Again, this message was well received by lenders in attendance. Again, they didn’t question the argument, instead they asked how they could get started.
It’s encouraging to travel around the country and see lenders moving forward with e-initiatives. It’s about time. On the one hand I regret that it is taking this turmoil to open some eyes, but I think the industry will be better for it. So, the “E” Evolution continues
