NMP - February 2018 - 64

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

Going 100 Percent Paperless:
Where It Is Now and Where It Is Headed
ational Mortgage
Professional
Magazine recently
sat down with Tim
Anderson, Director
of eServices at
DocMagic, to gain insight and
trending into the mortgage
industry's current progress and
needs to achieve a completely
paperless lending transaction. Tim
is a subject matter expert in end-toend digital mortgage processes,
electronic compliance and
supporting eServices, among an
array of other mortgage
technologies. He has more than 30
years of industry experience
working on both the lender and
vendor side of the business.

N

FEBRUARY 2018 n National Mortgage Professional Magazine n

NationalMortgageProfessional.com

64

NMP: Lots of attention has been
placed on the importance of
digital mortgages as of late, in
particular in the last 18 months.
Why the sudden rush?
Tim Anderson: The advent of
fintechs to focus and improve on
the consumer experience in order
to capture more business has been
significant. Couple that with the
government-sponsored enterprises
(GSEs) moving their traditional
post-closing pre-funding review
process to a more automated preclosing quality control (QC)
process, along with Day One
Certainty and Loan Quality Advisor,
and these have become major
factors and drivers of change.

"Delivering a system that does not include an automated
way to "e" enable the documents is not a solution."
-Tim Anderson, Director of eServices at DocMagic

eClose SaaS version in the spring of
last year.
The mistake that many people
make, however, is that they think
eMortgage services that facilitate eSign equates to eMortgages and
a paperless lending process have that couldn't be further from the
been available for quite some
truth. It is so much more involved
time, but industry-wide adoption
than licensing an eSign tool. There
has been slow up until lately.
is a dominant eSign player out there
However, you are with an
today that focuses on serving
organization that is currently at
multiple industries, but the ability to
the right place at the right time.
auto-enable all the legal documents
Can you elaborate as to how you required to facilitate a legal and
got here?
compliant closing, including the
The mortgage industry, as a whole, GSEs' requirements to deliver a
takes quite a long time to flex with
category one SMARTDoc eNote
significant changes, especially from takes a level of sophistication and
its entrenched paper-based
industry knowledge that no eSign
processes, which is a long-term
tool or dumb PDF-based doc
commitment. At DocMagic, we
provide can deliver. That is why
developed our own eSign
DocMagic is in a unique position to
technology back in 2011. We later
deliver a "total" solution, (eSign,
acquired eSignSystems from WAVE eClosing, eVault, eDocuments,
in 2014 to add a total enterprise
eNotary) than most vendors that are
on-premise eSign, eClosing and
just hocking a technology that
eVaulting solution for lenders and
lenders still must figure out on how
vendors to implement within their
to implement on their own.
own firewalls. With great fanfare,
Believe me, when you are a
we launched our hosted Total
national player and you start looking

at the magnitude of creating and
supporting thousands of mortgage
templates for closing documents
that are dynamic and variable,
those types of broad, non-industry
focused systems are not
sustainable and just won't scale
with industry complexities and
constant regulatory changes.
DocMagic's technology
facilitated most of the nation's
first successfully completed
eClosings. What can the industry
learn from those eClosings?
This is a very insightful question. We
knew early on that as eMortgages
became mainstream many "JohnnyCome-Lately" companies would
eventually jump into this space and
offer hybrid solutions. Depending
upon your lending footprint, at the
local jurisdiction level there are still a
lot of variables in what they accept
as legal and compliant from an
eSign, eNotary and eRecording
perspective and because of this
many of the major players are
hesitant to jump in. Again, this is a

key differentiator for us as we make
our documents "intelligent" to
provide visual cues and automated
compliance rules so we know down
to document and county level which
documents can be eSigned,
eNotarized or need to be papered
out and "wet" inked signed so the
lender does not have to manage all
of this.
The other key piece of the
equation is that you cannot just
automate the lender side of the
transaction and ignore the title
aspect. So we auto "e" enable those
documents for automated eSign and
eNotary to deliver a full paperless
closing and better consumer
experience for all parties involved.
eClose adoption is well on its way.
Can you tell us a little bit about
how eClosings are most
effectively addresses with
technology, and how it will help
the industry advance digital
mortgage adoption?
This also ties into the previous
question of us having been out there
longer than most to develop a more
total, feature rich and robust solution
than just a basic, simple eSigning
tool. Delivering a system that does
not include an automated way to "e"
enable the documents is not a
solution. Although we offer our
system with or without embedded
documents, in most installs where it
was left to the lender to enable their
documents, it never seemed to get
off the ground. It's one thing to
enable a few static documents that
incorporate a couple pages like the
1003 loan app, but it's a totally
different level of scale and
complexity to attempt to do this with
thousands of closings documents
that must be dynamic and variable
in nature.
Both Fannie Mae and Freddie
Mac maintain a list of approved
vendors that support eNote,
eClosing and eVaulting, but for
many on that list they are dependent
upon other vendors to provide the
key pieces needed to deliver a
complete process and solution. That
means that lenders have to
separately vet out and sign multiple
agreements to get and do what we
do as a single provider. This
introduces additional third party
processes and risk into an already
fairly complex process and service.
At the end of the day, who is that
one throat to choke that is going to
stand behind and rep and warrant
the process? People forget this is
more than buying shoes online via
Amazon. This is one of the most
important legal transactions that a


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