All lenders and servicers want to get documents completed and executed quickly. But that’s not always easy, especially when the market shifts and volumes for alternative products start to climb.
That’s exactly what’s happening right now in servicing. While the worst of the pandemic seems to be over, millions of borrowers are coming off forbearance plans and are having trouble resuming payments. As a result, requests are pouring in for loan modifications.
However, a growing number of servicers aren’t just modifying loans—they are eModifying them. In the process, they are revolutionizing servicing as we know it. Here are three big reasons why.
- eMods Are Fast
With an eModification, the entire loan modification process, including notarization of the new loan, can be performed online with SMARTDocs®. That means nobody has to waste time and energy mailing paper loan documents back and forth, or even manually tagging PDFs for signatures.
With eModifications, a borrower can also sign closing documents through remote online notarization, or RON. The borrower doesn’t have to wait for a notary to show up at their door. Rather, everything takes place on a video conference call. The notary reviews the documents online with the borrower and witnesses the borrower’s eSignatures.
Because the entire process is digital, servicers can process eModifications quickly and easily—often in a fraction of the time that it takes a typical loan mod.
- Compliance is a Snap
When modifying a borrower’s loan, servicers need to demonstrate compliance with all loan delivery and execution requirements by documenting everything. In fact, that’s even more important now, since the CFPB recently issued new rules to ensure borrowers have enough time to explore their loan options before foreclosure procedures can begin.
When combined with SMARTDocs, eModifications provide a digital audit trail that shows servicers met all requirements and all deadlines, since every SMARTDoc is embedded with information about where it was sent, who saw it, when they signed it, where they signed it, and what happened to it, you simply can’t do that with paper or PDFs. SMARTDocs also help servicers make sure no signatures are missed, too.
An added plus is that the RON process is also recorded and saved, so at any time if Fannie Mae or Freddie Mac ask the servicer for proof that the signing took place, there is irrefutable electronic evidence.
- Borrowers Love Them
For the borrower, eModifications are incredibly convenient. Why? Because it’s an entirely digital process, there’s no paper for someone to misplace or spill coffee on. Borrowers can fill out loan documents online safely and securely, no matter where they are—even through a smartphone.
At the end of the day, eModifications are a perfect example of how eMortgage technology can help lenders and servicers do more with less—all while staying compliant and providing a better customer experience.
A Word of Caution
Just one word of caution. Not all eModification technology is created equally. For instance, some technology providers don’t use SMARTDoc for all loan documents. Others don’t offer RONs. And very few provide all the pieces of a completely digital eModification process in one platform, which forces borrowers to hop from one platform to another, increasing the opportunity for errors and confusion.
SigniaDocuments, on the other hand, provides all the necessary components to do an eModification in one platform, including RONs, and is capable of producing every document as a SMARTDoc – on the fly! This enables servicers to easily meet borrower demand for loan mods or other loss mitigation options while saving money and time.
SigniaDocuments creates entire doc packages, not just the note, using Category 1 SMARTDocs®. Our documents never have to be tagged for the borrower’s signature and can be verified many times faster than using manual processes or OCR. And they guarantee that all information in a loan file can be read with 100% accuracy.
So the question is, why would you continue to use pdfs when you can use SMARTDocs? If you’re ready to get your eModifications done at warp speed with modern-day efficiency, give us a call at 1-877-7SIGNIA or email us at [email protected].