Closing house sales has traditionally been a painstakingly long process involving a lot of contracts, envelopes and manual edits. To avoid having to deal with these issues, one of the main lenders in Utah is looking to use online forms for mortgages, The Salt Lake Tribune reported.
Mountain America Credit Union rolled out the Quick Close paperless mortgage service about 18 months ago. This far, about 500 residents have used it, according to what Amy Moser, MACU vice president of mortgage services, told the news source, as many have seen it as a more convenient way to do business.
“They just have to sign once in front of a witness on a digital signature pad. They get the entire document on a thumb drive, and they go home,” Moser said, according to the Tribune. “It’s easier for the consumer.”
Highlighting just how easy it is to use these forms in lieu of paper documents, customer Adam Lowry said when he and his wife were refinancing their home, they used their computer to easily go through the paper work instead of reading through many contracts. By not having to rush to appointments, print copious amounts of paper and make sense of a lot of legal jargon, Lowry said he saved himself at least three hours of hassle.
David Luna, legislative officer with the Utah Association of Mortgage Professionals and president of Mortgage Educators and Compliance, told the Salt Lake Tribune that while some still feel the need to touch and page through actual legal documents, many people of the “new generation” that grew up on technology see this as the better way to go.
Think about where this paperless system will lead
The Mortgage Professionals of America Magazine quoted Steven Covey, author of “The Seven Habits of Highly Effective People,” who said all successful projects “begin with the end in mind.” Mortgage professionals must keep this in mind and know what adopting paperless mortgages can bring to the table. Once the technology is put into place, the system must address all the compliance, security and legal issues in mind, as well as security and safety of this sensitive information.
Having online forms for mortgages can save lenders and individuals a lot of time and money, but the website said the additional security added can be a huge coup for organizations looking to keep themselves and their clients safe.
“Paperless mortgages are more secure than paper-based loans,” MPA Magazine said. “Electronic files can be encrypted for secure transmission and storage, preventing unauthorized access to the data. An electronic ‘seal’ can also limit when, and by whom, changes are made to the loan file.”
Looking for an online forms solution for facilitating paperless mortgages should also mean keeping compliance in mind, the website said. A company that is able to help comply with federal, state and investor requirements will be extremely important in a successful implementation.