NMP - February 2018 - 62

a special focus on THE PURSUIT OF PAPERLESS a special focus on THE PURSUIT OF PA

where paper still hides

And everywhere else
In this article, we took you on a
whirlwind tour through the
mortgage process, but despite the
length of this piece, we could only
touch the high points. We didn't
talk about default servicing,
foreclosure and REO disposition,
the auction process or even
property valuations, but each one
of these areas-and all of the
others-has its technologists who
are intent on digitizing or otherwise
de-papering their part of the
process.
But remember, we're still only
operating in the primary mortgage
market. There is an entire level
above this one that must also
somehow get on the same page.
As JP Kelly,
President of
OpenClose, puts it:
"If all documents
can be handled
electronically
starting at the
point-of-sale and then sail

FEBRUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

62

continued from page 60

effortlessly through underwriting,
processing, closing and funding,
then as a mortgage lender you're
well on your way to being a
successful paperless shop. Now,
on the secondary market, 'digital
loan trading' is starting to gain
momentum, which is removing the
need to use spreadsheets, phone
calls and printing. As it relates to
servicing, the technology exists to
have the loan reside securely in an
eVault, as opposed to being
printed, imaged and filed
somewhere, but there is a ways to
go with adoption."
Kelly added, "In addition,
although the GSEs accept eNotes,
there has still been a reluctance
among the investor community to
do the same. When it comes to
warehouse lending and funding,
the collateral package traditionally
needs to be physically mailed to
the warehouse lender and then
sent to the investor/GSE. Some
warehouse lenders are starting to
implement technology to accept

eNotes, which enables lenders to
instantly deliver the package to the
'eWarehouse' lender, where it is
then registered with MERS, stored
securely in an eVault, and then the
eNote/collateral is electronically
transferred in minutes, rather than
days. This not only eliminates
paper but also saves in overnight
shipping costs, which quickly adds
up."
In the end, Kelly agreed with
most of the experts I visited with
for this article. Getting rid of the
paper depends upon two factors:
Technology capability and lender
adoption.
"There are lots of pieces of
technology to assist in facilitating a
paperless lending process and true
digital mortgage, but many are
lacking key components, or they
are siloed where systems often do
not talk well with one another and
exchange clean data," Kelly said.
"What's more, as an industry we're
still facing an adoption curve,

although that is quickly changing.
Those lenders that implement the
right end-to-end digital mortgage
technology now will have a
significant competitive advantage
over those lenders that wait, which
has a direct impact on the
borrower experience and a
reduction in the cost to originate
and close loans."
Finally, we must not forget that
going paperless isn't just about all
of the money we'll save and the
time we won't lose hunting for lost
documents. It's really about making
a better process for our borrowers.
As Brosnan put it: "It's not just
about saving money, but our
clients are the banks and here we
have an opportunity to help them
improve their customer experience
drastically. And that's what we
should be talking about. We're
cutting out paper to cut out weeks
of frustration for our borrowers and
that makes it all the more
important."

Rick Grant is Special Reports Editor for National
Mortgage Professional Magazine and Mortgage News
Network. He may be reached by phone at (570) 497-1026
or e-mail RickG@MortgageNewsNetwork.com.


http://www.NationalMortgageProfessional.com

Table of Contents for the Digital Edition of NMP - February 2018

Contents
NMP - February 2018 - Cover1
NMP - February 2018 - Cover2
NMP - February 2018 - 1
NMP - February 2018 - Contents
NMP - February 2018 - 3
NMP - February 2018 - 4
NMP - February 2018 - 5
NMP - February 2018 - 6
NMP - February 2018 - 7
NMP - February 2018 - 8
NMP - February 2018 - 9
NMP - February 2018 - 10
NMP - February 2018 - 11
NMP - February 2018 - 12
NMP - February 2018 - 13
NMP - February 2018 - 14
NMP - February 2018 - 15
NMP - February 2018 - 16
NMP - February 2018 - 17
NMP - February 2018 - 18
NMP - February 2018 - 19
NMP - February 2018 - 20
NMP - February 2018 - 21
NMP - February 2018 - 22
NMP - February 2018 - 23
NMP - February 2018 - 24
NMP - February 2018 - 25
NMP - February 2018 - 26
NMP - February 2018 - 27
NMP - February 2018 - 28
NMP - February 2018 - 29
NMP - February 2018 - 30
NMP - February 2018 - 31
NMP - February 2018 - 32
NMP - February 2018 - 33
NMP - February 2018 - 34
NMP - February 2018 - 35
NMP - February 2018 - 36
NMP - February 2018 - 37
NMP - February 2018 - 38
NMP - February 2018 - 39
NMP - February 2018 - 40
NMP - February 2018 - 41
NMP - February 2018 - 42
NMP - February 2018 - 43
NMP - February 2018 - 44
NMP - February 2018 - 45
NMP - February 2018 - 46
NMP - February 2018 - 47
NMP - February 2018 - 48
NMP - February 2018 - 49
NMP - February 2018 - 50
NMP - February 2018 - 51
NMP - February 2018 - 52
NMP - February 2018 - 53
NMP - February 2018 - 54
NMP - February 2018 - 55
NMP - February 2018 - 56
NMP - February 2018 - 57
NMP - February 2018 - 58
NMP - February 2018 - 59
NMP - February 2018 - 60
NMP - February 2018 - 61
NMP - February 2018 - 62
NMP - February 2018 - 63
NMP - February 2018 - 64
NMP - February 2018 - 65
NMP - February 2018 - 66
NMP - February 2018 - 67
NMP - February 2018 - 68
NMP - February 2018 - 69
NMP - February 2018 - 70
NMP - February 2018 - 71
NMP - February 2018 - 72
NMP - February 2018 - 73
NMP - February 2018 - 74
NMP - February 2018 - 75
NMP - February 2018 - 76
NMP - February 2018 - 77
NMP - February 2018 - 78
NMP - February 2018 - 79
NMP - February 2018 - 80
NMP - February 2018 - 81
NMP - February 2018 - 82
NMP - February 2018 - 83
NMP - February 2018 - 84
NMP - February 2018 - 85
NMP - February 2018 - 86
NMP - February 2018 - 87
NMP - February 2018 - 88
NMP - February 2018 - Cover3
NMP - February 2018 - Cover4
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201911
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201910
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201909
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201908
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201907
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201906
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201905
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201904
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201903
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201902
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201901
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201812
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201811
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201810
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201809
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201808
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201807
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201806
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201805
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201804
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201803
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201802
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201801
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201712
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201711
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201710
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201709
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201708
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201707
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201706
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201705
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201704
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201703
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201702
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201701
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201612
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201611
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201610
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201609
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201608
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201607
http://www.nxtbook.com/nxtbooks/nmpmedia/nmp_201604
http://www.nxtbookMEDIA.com