In the past, lenders, homeowners and mortgage brokers had a lot of paperwork to process. A typical loan file had about 400 pages of paper – multiply that by the millions of loans processed each year, and that adds up to a lot of paper, ink and other associated expenses, explained Bank Technology News.
“We now have newer OCR technology products such as Ephesoft that can scan mortgage packets and automatically classify all the different document types without the need to setup time-consuming templates” explained John Bergquist, VP Sales & Marketing at paper automation company, Binary Office, Inc.
For homeowners and lenders, positive developments have occurred in recent years. Now, much of the mortgage process is electronic, making it easier for everyone involved to access, complete and submit documents. It has also made it easier for third-party vendors to access documents as they need to see them, explained National Mortgage Professional. Plus, if these files need to be reviewed or edited in the future, then they’re more easily accessed since workers no longer have to spend hours filing and pulling loan paperwork.
But there are still changes that need to be made to automate data collection further. The Federal Housing Administration plans to introduce several new technology initiatives that will make the mortgage process easier, including developing new data submission standards and creating an electronic case binder format. The organization is also moving toward the e-submission of FHA loans using an e-signature, which will likely be implemented in 2015, reported Reverse Mortgage Daily.
Currently, the FHA has limited support for e-signatures, which has prevented the loan process from becoming as streamlined as it could be. This has been a point of frustration for some, especially since the Internal Revenue Service now allows citizens to file their taxes using an e-signature.
“Previous efforts to expand its e-signature acceptance have stalled, leaving a wide discrepancy between the technological capabilities of the FHA and GSEs – even as other government entities have embraced e-signatures, like the Internal Revenue Service’s adoption of e-sign for its 4506-T Request for Transcript of Tax Return,” explained the National Mortgage News.
Implementing an e-signature would allow people to click to sign documents rather than writing a name by hand dozens of times.