Yes, being the e-mortgage booster that I am, I am still in withdrawal over the loss of AmTrust Bank. They were so critical to the e-mortgage movement. They did such great things for the cause. But sadly, they are no more. So, what happens to e-mortgages from here?
According to Tim Anderson, president at SigniaDocs, “Any time a company like that, a forward thinker and a pioneer, goes out of business, the whole industry loses. AmTrust showed that through technology you can grow. Nobody knew who they were until they pushed e-mortgages out. Building those technology relationships was key to their growth. My hope is that the bank that acquired them continues down that e-mortgage path, or that Flagstar and others pick up the slack.
“AmTrust proved the case,” continued Mr. Anderson. “They showed that it can be a success. The big question is: Who is going to step up now?”
Even though AmTrust failed, Dan McLaughlin, executive vice president and product division manager for MERS remains bullish on e-mortgages. “E-mortgages only improved AmTrust’s position. Without e-mortgages AmTrust would have been acquired earlier due to liquidity issues. We believe that the buyer of AmTrust will continue to use e-notes and may in fact expand their usage in other channels.”
On a positive note, Wells Fargo, the largest mortgage originator, has both endorsed MERS on a grander scale and made its intentions know about its readiness to enter a more “e” world in 2010. Wells Fargo correspondents were greeted with a bulletin which included MERS registration required on all loans starting Jan. 4, 2010. Wells made it clear that sellers need to become MERS members quickly, and starting Jan. 4, all closed loans delivered for purchase must be registered by MERS. All sellers must be MERS members, able to register and transfer loans through MERS, and all loans must be registered with MERS by the seller at the time of delivery to Wells Fargo.
Wells has not mandated that those loans be e-notes, but by now making MERS mandatory for all correspondents, it would be easier for Wells to switch the light on and move to accepting e-notes. “Many business lines within Wells Fargo are evaluating and implementing e-lending capabilities,” said Robin Lamb Hannah, vice president of correspondent e-business with Wells Fargo Home Mortgage. “In the end, individual channel priority is driven by market demand and opportunity. Providing e-lending solutions is an effective way to gain efficiencies, cut costs, effectively manage compliance and enhance the customer experience. Wells Fargo Funding is working on various e-lending capabilities to insure we are positioned appropriately when adoption becomes more prominent in the industry.”
So, steps like this one from Wells and others yet to announce will continue the e-mortgage going strong in 2010. AmTrust leads the way and now others are following.
