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.

1. 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.

2. 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.

3. 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].

As the dust settles from one of the longest refi booms in the mortgage industry’s history, mortgage lenders are possibly headed for a new treat—one of the strongest purchase markets in years. Alas, not all that glitters is gold.

While most forecasters are projecting record home sales, the challenges lenders face heading into the new year are immense. It’s no wonder that many lenders are taking a second look at their vendors, software providers and other third-party relationships to make sure they have the support they need to have a successful year.

If you find yourself in the same boat, here’s three things to look for. Pay particular attention to the third—it’s probably the most important.

1. High Costs

According to a recent McKinsey & Company article, “Five Trends Reshaping the U.S. Home Mortgage Industry,” most mortgage lenders are struggling with higher costs and longer cycle times, with current per loan costs ranging between $7,000 and $9,000. These costs are likely to rise as purchase loans eclipse refinances in the year ahead. In fact, purchase volume is expected to increase 9% to a record $1.73 trillion, according to the Mortgage Bankers Association.

With tight inventory and multiple-offer scenarios in most housing markets, lenders are already spending more time and money nurturing customers before they’re able to find the right home to buy. According to a recent Redfin report, the supply of homes for sale this past June reached a record low 1.38 million properties, and the median home that was sold in June and July spent a record low 15 days on the market.

As purchase volumes grow, you’re going to need an outsourcing partner with a proven track record of dramatically lowering business costs by taking time-intensive work off your team’s plate. Your partner should be an expert in non-QM loan production as well, which is likely to increase as more self-employed buyers enter the market.

2. Millennials

It’s a fact that Millennials are driving today’s homebuying market. According to the National Association of Realtors, this demographic accounts for 53% of all first-time homebuyers. And Gen Z consumers, who are quickly approaching prime homebuying age, are right behind them. It’s also a fact that younger borrowers prefer a digital mortgage experience, as they do the bulk of their shopping online.

That’s why it’s important to have a partner that specializes in eMortgages, including eSign technology, eNotes, and remote online notarization (RON) so you can provide your customers with a truly digital mortgage experience and the ability to sign disclosures and closing documents electronically—even remotely, if your customers so choose.

3. End-to-end Efficiency

Traditionally, mortgage lenders and servicers thought about outsourcing and technology needs separately. They turned to third-party loan fulfillment providers for operational support and due diligence reviews, and software providers for the technology to power their business.

Today, these lines are blurred, as more third-party companies now offer both services and technology. However, very few offer end-to-end solutions, which means their clients can only trust them to do so much.

The best course is to find a provider that has end-to-end solutions—both operational support and technology—that cover the entire loan lifecycle of your business. Such providers are truly rare, but they do exist and Evolve Mortgage Services is one of them.

At Evolve, we provide a full suite of loan origination, closed loan and third-party review services, and specialize in non-QM loans. Through our SigniaDocuments subsidiary, we also offer the industry’s most advanced loan document engine, a fully compliant library of SMARTDocs, and everything lenders need to implement eNotes, RONs and connectivity to the MERS eRegistry.

As the mortgage market continues to change in 2022, your business needs will inevitably evolve, too. If you’re looking for a trusted partner that provides a single source solution to help you thrive next year and continue to evolve in the years ahead, give us a call at 888-892-1843 or drop us a note at [email protected].