Paul Anselmo is Named a 2022 Thought Leader Award Winner

CONGRATULATIONS to all of the Progress In Lending 2022 Thought Leader Award Winners!

We are thrilled to share that Paul Anselmo has been recognized for the second year in a row as an industry Thought Leader awarded by Progress In Lending as he continues to innovate and help our market evolve.

All you read about these days is who’s laying staff off, closing or has closed their doors and who else is merging with someone or simply exiting stage left. The state of lending and technical innovations has taken somewhat of a backseat as participants adjust their plans and strategy to stay afloat — but there is no better time than the present to automate and innovate to survive.

Long before the pandemic and prior to this latest financial market crisis, Paul has been saying “With today’s technology, all the stars are aligned for lenders to achieve a true digital closing and a better borrower experience. All the tools, capabilities and expertise are out there for lenders to de-fragment their entire loan ecosystem and turn it into a well-oiled machine. All they need is a comprehensive strategy and the willingness to execute it.” That statement holds true today, more than ever… wherever possible mortgage market participants should embrace new technology, tools and engage partners that provide a “one stop shop experience” or single source solution.

New Products, Channels and a Whole New Normal

Non-QM, Seconds, HELOCs, ARMs, Correspondent channels, and rate hikes… What’s the new normal? How can you keep the pace? To survive in today’s volatile marketplace: Move to a flexible; outsourced mortgage solution with a variable cost structure, go digital with as much of the process from app to eClose, utilize integrated, state-of-the-art technology with modular components to target and reduce risk and streamline operational efficiencies to scale production.

“As pioneers of SMARTDoc® technology we have seen the positive impact that digital transformation can have,” Paul says. “For example, SigniaDocuments’ proprietary doc engine produces a complete document library built entirely on native XML SMARTDocs. SMARTDocs include embedded enabled eSignature and eNotary tags eliminating the need to OCR or create templates and manual tags saves time and safeguards operational efficiency. Its fully integrated compliance engine also ensures legally compliant, rep and warranted mortgage documents further reducing risk and expanding scalability.”

Paul’s vision and leadership led to Evolve being the first to the mortgage industry with an eHELOC solution, to automate the HELOC origination process. This new solution enables lenders to approve HELOCs within seven minutes and eClose lines within seven days! “Expect to see more mortgage market participant closures, M&A activity, new and alternate product lines being introduced and digital adoption trends to continue through a good part of 2023,” Paul notes. “Once the dust settles from the industry’s current calamity, the remaining participants along with and consumers, will create and define a whole new normal.”

Paul and Evolve’s experienced team of professionals, its proven platform and innovative technologies, will continue to provide seamless component; or end-to-end loan services and support, to create custom and sustainable strategies to propel the market forward, set industry standards and position participants for continued success.

To view all the amazing winners: 2022 Thought Leader Award Winners.

Thank you, Tony Garritano and the Progress In Lending team for this award!

 

Ask the Experts: Featuring Ann Gibbons

Effective Technologies for 2023

~ Lenders will need tech that squeezes every ounce of efficiency. ~

This article was originally published in the Mortgage Women Magazine November 2022 issue.

Considering lenders just experienced two massive market shifts from historic-level refi volumes and swift increases in rate hikes, what technologies will be most effective in the coming year?

From boom to bust and back again, the mortgage industry is no stranger to economic cycles. This cycle, however, has been a seismic wave of uncertainty due to rapidly rising home prices, increasing mortgage rates and low inventory of homes. Through all this, technology is playing a new role for companies across the board.  While mortgage companies are being forced to cut back on their budgets, some are keeping technology investment at the forefront.

Remote work, for example, has become a talent recruitment tool for all businesses, including mortgage companies. As this trend continues, lenders will continue to need automated communications and processes to make sure nothing slips through the cracks. It means creating queues for each milestone that let the consumer and the operations teams know when action is needed, or a file is ready for review.  It means integrating CRM systems with loan origination systems with telephony solutions.

In a higher rate environment with tighter profit margins, lenders will need technologies that minimize the number of touches on a loan file and squeeze every ounce of efficiency from origination to closing to reduce per loan costs. For instance, optical character recognition is a maturing technology that could help the industry start automating some underwriting decisions, speeding the process and reducing costs.

Lenders with technologies that help loan officers continue producing will also have an advantage in today’s more challenging environment, especially when it comes to recruiting. Loan officers are fighting for every loan they can get and are demanding better access to data and lead information, and many are actively looking for innovative lenders that can provide them with an edge.

Because mortgage companies are minimizing their spending in some areas, there is a renewed effort from hackers and cybercriminals to try to find companies with weaker security infrastructure. While the ROI might be difficult to quantify, all mortgage lenders continue to need cybersecurity protocols to prevent system downtime and data breaches. The risks—both reputational and legal—are always going to be there.

Proactive lenders recognize the opportunity technology provides to improve communication, increase efficiency and reduce risks to scale their businesses for the future. So, I’ve asked other mortgage technology professionals what technologies they see that will benefit their companies and clients into the next year and beyond.

Julia Curran, Senior Director, Product & Client Solutions, SitusAMC

The refi boom and the recent rate hikes caused two different problems in the mortgage industry. The historic refinance volume we saw early in the pandemic required lenders to process, underwrite and close loans at a volume no one was staffed for, resulting in massive hiring pushes and signing bonuses to meet demand. The subsequent rate hikes dried up loan application pipelines, forcing lenders to reduce the staff they worked so hard to hire just months earlier. The resulting shift from an incredibly robust market to a near standstill has put budgeting restrictions on mortgage lenders, forcing them to be more selective with where they are spending their dollars—technology and human capital alike.

As the industry finds a new normal, we have an opportunity to become less reliant on manual processes and embrace automation to be able to better handle these market shifts in a rapid and cost-efficient manner and cause less disruption to staffing levels. Implementing tech to automate certain processes will also free up staff to focus on their best use and overall deal making.

In the rising rate environment, originators have had to get more creative with their loan products. This variety helps with volume but puts a strain on the underwriting team to be familiar with multiple guideline nuances. Technology that can absorb data and run calculations and test thresholds in accordance with guidelines will prove useful. These rules engines can be used independently or in conjunction with data that is sourced electronically from primary sources and fed directly to these engines. This automation reduces the need for human capital while minimizing errors and increasing efficiency.

This coming year, technologies that allow for the automated review of applications to varied guidelines and technologies that support HELOC lending will be a smart investment. People who currently have very low rates on their homes will not want to refinance, but in the coming year, HELOC volume will likely increase dramatically.

As the market shifts from closed end, high interest rate products, origination systems that manage the necessary documentation for HELOCs and correspondingly servicing systems that can handle draws and repayment on these products are two forms of technology that will be in high demand. We’ve seen our own offering in this area – BRES AUS – help support numerous lenders.

Ann Gibbons, Managing Director, Evolve Mortgage Services

When volumes decrease rapidly, companies are faced with “rightsizing” personnel and reducing expenses to stay profitable. Taking advantage of the slowdown in loan volume to make important shifts in operations can set companies up for success today and tomorrow. When production levels shift, however, it’s the perfect opportunity to adapt digital processes.

A MarketWise Study recently reported that lenders transitioning from paper to hybrid eClosings saved $211.97, or 37%, per loan. Additionally, lenders who closed with a fully paperless remote online notary (RON) eClosing saved an average of $444, or 91%. A full SMARTDoc loan package (not just the eNote) also creates a secure, immutable data set that can be held in an eVault and accessed by warehouse lenders, buyers, and investors to deliver electronic proof of compliance for both the data and the docs.

Shifting costs from fixed to variable also makes sense when volumes have decreased. For this reason, outsourcing origination processes, like underwriting, allow them to be done more efficiently and at predictable costs. In addition, a quality diligence provider can integrate their services with a client’s LOS, allowing for loan files, data and results to be easily transmitted with less risk of error. The use of customized automated underwriting systems created for non-QM markets can also help originators manufacture alternative types of products with certainty while providing users an “agency-like” experience.

Any lender or investor taking advantage of this unique opportunity to expand product lines and aim for a true digital end-to-end solution should partner with a trusted, experienced vendor. This vendor should provide an insurance policy that protects investors against diligence errors and mitigates risk. However, it’s important to shop around for the most effective partner and solutions that provide for more efficiency, flexibility, and scalability and utilize state-of-the-art technology platforms and services.

These market disruptions are an opportune time to review current operating methods and take advantage of the changing environment to adapt new technologies. If now is not the best time to invest in operational efficiencies for the future—following some of the most robust years in mortgage financing—then when?

Maria Moskver, CEO, CloudVirga

For lenders to succeed, they must get back to the core principle of our industry — people. Both 2020 and 2021 were a constant race just to keep up, so everything was about managing volume. Moving forward, that paradigm needs to shift to the individual experience of both the borrower and the loan officer if lenders want to be successful long-term and effectively manage the ebbs and flows of our industry. To make that shift, technology should have two key areas of focus: user experience and maintaining existing relationships.

Rates come and go, but lenders will always win with a good experience. A positive experience, and the technology that supports it, will create customers for life and retain the great talent all lenders need to succeed. The focus needs to shift from how we have been doing it to what our people expect and need. The largest lenders have been successful not because they can momentarily manipulate rates, but because they create a seamless experience and assist loan officers in a way that their competitors have not. In fact, the loan officer experience is the core principle behind the design of our new TPO Platform, which helps lenders level the playing field and compete on a higher level.

The second technological focus should be on managing existing client portfolios and ensuring that the original relationship remains strong. It’s no secret that servicing and past clients are a lender’s strongest hope for continual success, but most have not focused on this as diligently as they should. The past two years have been about managing the moment and not the future. By properly leveraging technology that serves to keep those relationships fresh by alerting loan officers to new loan opportunities, lenders will be able to improve customer and LO satisfaction and set themselves up for success even in the toughest of markets.

Our industry has always been about people, which is easy to overlook during both frantic and slow periods. The key to success is to recognize the importance of people by implementing technological solutions that help create the experience borrowers and loan officers deserve, while maintaining relationships that will carry into the future.

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About the Author: Lorie Helms, CTO, Cherry Creek Mortgage

As CTO, Lorie leads Cherry Creek Mortgage’s IT operations, software development, customer relationship management and security teams. She brings more than 20 years of experience in mortgage technology, as well as a passion for empowering her teams.

Link to the full November edition of Mortgage Women Magazine: Accelerating Women’s Mortgage Careers Digital Edition | Mortgage Women Magazine (nationalmortgageprofessional.com)

Evolve Mortgage Services and FirstClose Join Forces to Deliver an End-to-End Digital eHELOC Solution

New Solution Offers Seven-Minute Approval and Seven-Day eClosing

 

FRISCO, Texas, October 20, 2022Evolve Mortgage Services, LLC, a top provider of outsourced mortgage solutions and eMortgage technology solutions, announced today it is partnering with FirstClose, Inc., a leading fintech provider of data and workflow solutions for home equity lenders nationwide, to automate the HELOC origination process. The new solution will enable lenders to approve HELOCs within seven minutes and eClose lines within seven days.

The new collaboration combines FirstClose EquityONE’s home equity application management system with Evolve’s SigniaDocument engine and its full eSign and eNotary (RON) capabilities.

The combination:

  • Delivers a fully digital, paperless eOrigination and eClosing process from application to close.
  • Gives consumers instant online feedback, including their home valuation, available home equity, loan options as well as an instant credit decision.
  • Reduces time to close from weeks to days with automated workflows, including ordering of required settlement services.
  • Provides a superior, streamlined consumer experience
  • Uses RON eClosing to decrease closing time from 50 minutes to 15 minutes.
  • Allows investors to eRegister and board loans the same day for quicker accurate funding.

FirstClose EquityONE is a home equity application management system that qualifies a consumer and continues to nurture them throughout the entire process. Consumers can explore loan options and once ready, apply and receive an instant credit decision. FirstClose offers everything from application to close, including the ability to order required settlement services such as credit, flood, appraisal, title, tax, income, employment, and asset verification on one easy-to-navigate platform taking friction, cost and risk out of the process.

“While home equity products are experiencing something of a renaissance thanks to record home values, the market is nothing new to FirstClose. We were the pioneer in this space nearly two decades ago,” said Tedd Smith, Chief Executive Officer of FirstClose. “Lenders are continuously looking to optimize their closing processes and services, while borrowers want the white-glove service and seamless experience. Our partnership with Evolve’s SigniaDocument engine, to deliver the eClosing experience consumers and lenders desire, completes the cycle.”

Evolve’s SigniaDocuments, provides the electronic documents for initial and final closing as well as the full eSign and eNotary. SigniaDocuments’ proprietary doc engine produces a complete document library built entirely on native XML SMARTDocs®. SMARTDocs include embedded enabled eSignature and eNotary tags eliminating need to OCR or create templates and manual tags. Its integrated compliance engine also ensures legally compliant, rep and warranted mortgage documents further reducing risk and expanding scalability.

Paul Anselmo, Evolve’s Founder and CEO said “Mortgage market constituents need a forward-looking game plan to help position themselves to compete in this tightening and dwindling market for the remainder of 2022 and into 2023.  This partnership allows us to digitize the entire process from app to close, reduce cost and risk and boost production and profitability.  As we like to say at Evolve, our experienced team of people, proven platform, and innovative technology and tools, we provide our clients the opportunity to “Close With Confidence and Fund Next Day With Certainty®!”

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About FirstClose, Inc.

Founded in 2000 and headquartered in Austin, Texas, FirstClose provides technology solutions to HELOC and lenders nationwide.  The company’s mission is to increase profitability and reduce cost for mortgage lenders. FirstClose makes this possible through offering systems and relationships that enable lenders to more effectively assist the lender’s borrowers, reduce closing costs, and ultimately shorten closing times. For more information, visit www.firstclose.com.

About Evolve Mortgage Services

Evolve Mortgage Services is a top provider of tech-enabled outsourced mortgage solutions and digital eMortgage solutions. Evolve enables companies to eliminate roadblocks and focus their valuable resources on growth. The company’s services empower mortgage lenders, servicers, and investors to reduce inefficiencies in their mortgage loan process and dramatically improve profitability. Founded and run by a team of industry veterans, Evolve provides seamless component or end-to-end loan services and creates custom strategies for each client. The firm has extensive experience in origination and post-closing services; institutional, whole loan, and servicing acquisition due diligence; collateral recovery HMDA and forensic compliance reviews; whole loan sales; agency deliveries; and TPR securitization reviews and asset transfers. Evolve is based in Frisco, Texas. For more information, visit www.evolvemortgageservices.com

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Evolve Appoints Industry Legend Mark Calabria to Join Advisory Board

Building a sound financial future by constantly evolving

FRISCO, Texas, July 11, 2022 — Evolve Mortgage Services, a top provider of outsourced mortgage solutions and eMortgage technology solutions, announced today it has added an elite industry legend and luminary, Mark Calabria as a member of its advisory board.

Members will serve on the Evolve advisory board for a one-year term from July 1, 2022, to June 30, 2023.

The charter of the advisory board is to add value by exposing the management team to new innovations, broadening horizons, improve understanding of Evolve’s market position, company risks, future drivers of growth, and challenging assumptions.  Its mission and vision are to embrace, drive change and propel the company, and industry forward.

Specific areas of the board’s primary focus include:

  • Promoting the organization in the community
  • Expanding an organization’s network through strategic planning
  • Guiding the organization’s leadership in specific subject matters
  • Connecting the organization to new audiences

We welcome our esteemed new advisory board member, Mark Calabria! Calabria is currently serving as a senior advisor for Cato Institute, he has more than 25 years of financial regulations experience and was the former Director, of the Federal Housing Finance Agency “FHFA,” where he was appointed by President Trump. As FHFA Director, Calabria led the agency’s response to COVID, bringing stability and support to the mortgage market, while also laying the groundwork for a removal of Fannie Mae and Freddie Mac from conservatorship. Prior to FHFA, Calabria was Chief Economist to the Vice President at the White House.

“Mark has impressed us with his business acumen, caliber of achievements and invaluable expertise,” said Paul Anselmo, Founder/CEO of Evolve. “The vast array of talent and knowledge Calabria brings will help accelerate our growth and expand our digital footprint as we continue to evolve our solutions to change the way loans are bought and sold in the marketplace.”

“I am excited to join Evolve’s advisory board,” said Calabria, “Looking forward to collaborating with the team to help pioneer new emerging digital trends and create innovative technology solutions that provide not only the tools, data and document quality, but all the controls and compliance requirements needed from mortgage origination to the secondary marketing delivery process. Paul and his team are true innovators, and I know will bring much needed change to the mortgage market.”

About Evolve Mortgage Services

Evolve Mortgage Services is a top provider of outsourced mortgage solutions and eMortgage technology solutions. Evolve enables companies to eliminate roadblocks and focus their valuable resources on growth. The company’s services empower mortgage lenders, servicers, and investors to reduce inefficiencies in their mortgage loan process and dramatically improve profitability. Founded and run by a team of industry veterans, Evolve provides seamless component or end-to-end loan services and creates custom strategies for each client. The firm has extensive experience in origination and post-closing services; institutional, whole loan, and servicing acquisition due diligence; collateral recovery HMDA and forensic compliance reviews; whole loan sales; agency deliveries; and TPR securitizations. Evolve is based in Frisco, Texas. For more information, visit www.evolvemortgageservices.com

SOURCE: Evolve Mortgage Services

Related Links:

Evolve Mortgage Services Appoints Industry Legend Mark Calabria to Join Advisory Board (prnewswire.com)

www.evolvemortgageservices.com

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Q3 2022 Industry Events

 

Summer is finally here — can you believe it?

Evolve Mortgage Services, LLC, SigniaDocuments and Brooks Systems are proud supporters of the industry’s marquis events!  We look forward to participating and connecting with you at these up-coming Q32022 conferences and annual meetings! Let’s meet to strategize on how we can #evolvetogether.  Reach out today to any of our family members or send a note to: [email protected] to learn how we enable clients to originate, buy, sell, and securitize more loans quickly, securely and confidently.

Q3 Events
– July 14: eSignature and Records Association (eSRA) Member Meeting – *Tim Anderson is a speaker!
– July 25-27: CMBA Western Secondary
– August 19-20: NE Mortgage Expo Non-QM Summit
– September 13-15: NMN Digital Mortgage
– September 18-20: FiveStar Evolve

Evolve Is Named A HW Tech 100 Mortgage Award Winner

Congratulations to all of the 2022 HW Tech 100 Award Winners!

Link to HW Feature: Evolve Mortgage Services – HousingWire

HW Tech 100 Award Winner 3rd Year in a Row!

Eliminates roadblocks by providing onshore mortgage outsourcing and digital eMortgage technologies

Evolve Mortgage Services — founded in 1993 — empowers mortgage lenders, servicers and investors to reduce inefficiencies and dramatically improve profitability across the entire lending lifecycle from origination through funding, investor delivery and closed loan due diligence. Further, through its SigniaDocuments platform, Evolve is one of the only firms capable of providing a full, truly digital eMortgage in a single platform.

  • Three major technology solutions during origination provides 100s of the data fields needed to complete TPR services for rated securitizations.
  • Standing up dozens of origination clients that were previously ignored or overlooked by other TPR firms because “they weren’t big enough.”
  • Empowers clients through technology and closed loan services to compete with the larger firms and continue delivering high quality service to their borrowers.

Company Website:

https://www.evolvemortgageservices.com/

Markets Served: Loan Origination, Servicing, Secondary

Company HQ: Frisco, TX

Paul Anselmo Speaks to MBA Newslink: Pandemic’s Impact on Digital Processes is Fueling M&A

(Mortgage M&A Trends) Paul Anselmo: Pandemic’s Impact on Digital Processes is Fueling M&A

As featured in MBA Newslink on March 2, 2022

Paul Anselmo is CEO and founder of Evolve Mortgage Services, a provider of outsourced mortgage platforms and eMortgage technology. He has more than 40 years of experience in the banking and mortgage industries, and more than 25 years in mortgage outsourcing. Previously he served as president, CEO and founder of Mortgage Resource Network, a business process outsourcer and technology provider to the mortgage industry. In 2019, he was honored as a “Lending Luminary” by the PROGRESS in Lending Association. He can be reached at [email protected]

(This is part two of a four-part series, “Mortgage M&A Trends”, discussing the recent and upcoming mortgage merger environment. The stories were written by four executives, three of whom have been through a recent M&A transaction: CIVIC Financial Services President William Tessar, Evolve Mortgage Services CEO Paul Anselmo, LoanLogics CEO Bill Neville, and STRATMOR Group Senior Partner Garth Graham.)

For nearly two decades, creating a completely digital process from application to the secondary market has been one of the mortgage industry’s greatest, most exciting and most difficult challenges. The eMortgage remains an elusive goal—but today we’re closer to it than ever.

There’s no doubt social distancing and the shift to remote work energized demand for digital processes. This in turn is fueling a great deal of mergers and acquisitions, which are bringing together different components needed for lenders, servicers and investors to adopt eMortgages. In fact, we just did an eMortgage-related acquisition of our own, and the process couldn’t have gone any better.

Finding the Final Piece

There are a few mortgage industry veterans like myself who have witnessed the long evolution of digital mortgage processes necessary to achieve an eMortgage, including a fully digital eClosing. However, most eClosings today are not seamless, but a very fragmented process that involves numerous vendors that each offer only one component of what eClosings require. Until this year, the industry didn’t have a single technology platform that enabled borrowers to sign all their disclosures, loan documents and closing documents electronically in one signing environment.

At Evolve, we had been able to bring in together most of the components of an end-to-end digital process. Up until our most recent acquisition there was one important piece that was still missing—remote online notarizations, or RONs, which allow borrowers to sign their closing documents while a notary witnesses the process via a webcam over the Internet. That changed when we acquired E-Notary Seal, which provides a platform designed for public notaries that enables mortgage lenders and title insurance companies to take advantage of online notary services to close loans.

The technology to enable RONs has been around for some time, yet RONs were not legal in the vast majority of U.S. states until the pandemic, when RON adoption took off to enable borrowers to close their mortgages while social distancing. With E-Notary Seal, we can now enable RONs in all states that accept them and provide a very simple and innovative way for borrowers to securely sign, notarize and send documents online within minutes.

Our acquisition of E-Notary Seal made sense at all levels. We’ve known and worked together for some time with the company’s founder, Felicia Grimes, who is an experienced notary public and a true innovator in her field. Felicia and I had many conversations about the eClosing process, and we share the same point of view about where the industry was falling short. Our acquisition was a natural extension of our relationship. Felicia has now joined Evolve as vice president of our eMortgage division, where she is assisting Tim Anderson in overseeing delivery of our eClosing services.

Currently, we’re in the final stages of integrating E-Notary Seal into our platform. Once that happens, we’ll be the only eMortgage provider that can offer the complete suite of eClosing technologies lenders need under one user experience. Our platform can also be private labeled and branded by our lender and title clients to provide their borrowers with a consistent experience from the moment they apply until they sign the last closing document. In effect, we’ve made a single, end-to-end truly digital eMortgage possible.

Why More Deals Are Coming

I fully expect other eClosing and mortgage technology companies to follow our lead. There have already been several other acquisitions in the eMortgage space over the past year, including deals involving ICE Technology, Stewart Information Services, SitusAMC, Black Knight and CoreLogic. Consumers are clamoring for a more digital mortgage experience, so I would expect the level of M&A activity in the mortgage technology space to accelerate.

However, it’s clear the bulk of recent M&A activity has been centered around consumer-facing technologies and digital mortgage processes. Most deals are falling short of creating a completely end-to-end eMortgage process. One of the reasons for this is that most eClosing vendors don’t offer all the components that eMortgages require. Another is that lenders and title companies remain generally resistant to change. Many lenders are tied to contracts with multiple closing and closing technology providers—plus their technology staffs are often backed up as mortgage rates are at all-time lows and origination volumes remain brisk. Right now, lenders don’t have a lot of bandwidth to adopt eMortgages.

Last year, we thought that COVID, social distancing, and the transition to remote work would have a bigger impact on eMortgage adoption. To be sure, these events have driven the legalization and adoption of RONs within a lot of states, but they haven’t improved the rest of the transaction. Most borrowers are electronically signing documents, but relatively few have experienced a complete digital, SMARTDoc-enabled eMortgage process.

All of this is having an impact on the level of deals happening in the eMortgage space. At the same time, however, more lenders have been closing loans through a hybrid eClosing approach, in which the note is a SMARTDoc®. As a result, more people in our industry are becoming aware of the benefits of SMARTDocs, which streamline the flow of data and enable greater speed and accuracy throughout the mortgage lifecycle. Evolve had this vision nearly two decades ago, where it built its entire legal document library as SMARTDocs, recognizing then the downstream benefits for both buyers and sellers in the secondary market. My hope is that this will drive more M&A activity that places a focus on providing fully digital, end-to-end eMortgages.

We’re pretty excited about our most recent acquisition and what it allows us to do. Consumers have been begging for a remote signing experience, and most lenders don’t have the bandwidth or resources to create that experience on their own. With E-Notary Seal, we’ve got the entire suite of eMortgage solutions lenders need under one roof, which can be branded for lenders so they can provide a common, seamless user experience to their customers, from application to notarization and beyond.

I have been around long enough to know that change doesn’t come easy. There will be a day when SMARTDocs, RONs and eMortgages will become standard in our industry. With the recent deals and more opportunities certain to follow, that day will hopefully come sooner than later.

(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at [email protected]; or Michael Tucker, editorial manager, at [email protected].)

Link to MBA Newslink’s feature: (Mortgage M&A Trends) Paul Anselmo: Pandemic’s Impact on Digital Processes is Fueling M&A – MBA Newslink

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The Benefits of eMods: DS News Q&A with Tim Anderson

Featured in the February 2022 digital edition–DSNews had a chance to speak with Anderson about how utilizing eModifications is better for mortgage servicers and for borrowers.

What are some of the potential benefits of eModifications for servicers?

Anderson: An eModification is a loan modification that is completely digital. With an eModification, the entire loan modification process – including notarizing the new loan – can all be done online paperlessly, electronically. An eModification enables servicers to process loan modifications more quickly and easily than they would under traditional antiquated, paper-based processes. Recently, eModifications have become popular as many borrowers are coming off of forbearance plans and need to resume mortgage payments. MISMO®, in fact, recently created an eModification reference guide for servicers that outlines best practices on how to create, eSign, store, and deliver electronically signed loan modifications.

With every loan modification, servicers must be able to show they’ve complied with all loan delivery, acknowledgement, acceptance, and execution requirements. In other words, everything must be documented. For example, this summer, the CFPB issued new rules to ensure borrowers have plenty of time to explore their loan options before foreclosure procedures can begin.

When combined with SMARTDocs®, today’s eModification technology gives servicers a simple way to provide electronic evidence of compliance that they’ve met the agency’s new rules. SMARTDocs include time and date stamps of when they received, viewed and executed documents and automatically creates a digital audit trail to prove what they said they did. This enables servicers to prove they’ve met deadlines and other requirements involved with a loan modification with zero effort.

Couldn’t servicers just use emails or phone logs to verify that they have met the required deadlines? What are the additional benefits provided by eMods?

Anderson: Sure, they can, however, email and phone records are typically not attached to the loan file—they are kept on different systems and have to be assembled to show compliance. That’s going to be extraordinarily difficult with so many borrowers looking to modify their loans as we emerge from the pandemic. SMARTDocs, on the other hand, already have all the information about where and when they were sent and who signed them embedded within them. Because eModification technology can be integrated into a servicer’s existing systems, SMARTDocs can also auto populate the signatures to ensure they do not miss any is immediately available for the borrower to eSign just minutes after the appropriate loan workout is selected. In terms of efficiency and convenience, there’s no comparison.

How do borrowers benefit from an eModification?
Anderson: For one thing, eModifications do not involve any paper, so there’s no risk of the borrower misplacing loan documents, signatures or something happening to them. Secondly, eModifications take borrowers through each step of the loan modification process and create a digital audit trail as each step is completed, so they’re much secure and compliant. An eModification is very convenient, too. The borrower can fill out all the necessary documents online via their laptop or on any digital device, no matter where they are. It’s fast, easy, safe and secure.

How are borrowers able to bypass the in-person notarization?
Anderson: With eModifications, the borrower can sign closing documents through remote online notarization, or RON, which requires no in-person interaction. Instead, the notary joins the borrower on a video conference call, reviews the documents electronically with the borrower, and witnesses the borrower’s eSignatures. The entire signing process is recorded and saved for servicer compliance. At any point up to 10 years after the Modification has taken place, Fannie Mae or Freddie Mac can ask the servicer to provide proof that the signing happened as it should have. The video provides irrefutable electronic evidence.

However, not all eModification technology is the same. Many providers do not enable borrowers to sign their loan documents using a remote notary, and some don’t even use SMARTDocs. In order to take advantage of the full value from eModifications, it’s important for servicers to choose technology that includes all the components of the loan modification process, including RONs, and is capable of producing every document as a SMARTDoc. By doing so, servicers can scale easily to handle high volumes of borrower requests while producing fewer errors, creating efficiencies in the process, saving time and ultimately providing a better consumer experience.

Tim Anderson is President of the eMortgage Division for Evolve Mortgage Services, where he is responsible for overseeing the deployment of the company’s end-to-end digital closing platform and developing strategic partner relationships. Tim is a digital mortgage pioneer and has more than 35 years of industry experience.  He can be reached at [email protected].

Link to DSNews February feature (*See pgs. 12-13): DSN_FEB22 (dsnews.com)

Evolve Mortgage Services Acquires Brooks Systems LLC to Support Mortgage Regulation Compliance

For more than 20 years Brooks has been the primary provider of cutting-edge compliance software for a majority of companies in the mortgage business.

FRISCO, Texas, December 16, 2021 — Evolve Mortgage Services, a top provider of outsourced mortgage solutions and eMortgage technology solutions, announced today it has acquired Brooks Systems LLC to expand its technical automation and regulatory compliance offerings.

Brooks and Evolve have a 20-year relationship with the Brooks Math Engine and other regulatory testing products that have been embedded into Evolve’s core offerings all along. Rather than just being another business process outsource provider to manage volume capacity, Evolve Mortgage Services has invested heavily in technology to not only be able to scale but more importantly, to deliver a more consistent and fully compliant, automated process that guarantees better data quality and integrity by creating stronger underwriting and compliance results fully backed with rep and warrants.

“With our acquisition of Brooks Systems LLC, this will help continue to ensure this” said Evolve Mortgage Services CEO Paul Anselmo. Adding, “Bob Brooks has been a great partner and friend and has been at the forefront of compliance since the first days of financial regulation and we at Evolve are honored to carry that torch forward as Bob takes a well-deserved rest.”  Other key staff members will be joining Evolve as a part of this transaction.

Brooks Financial Systems, a West Mystic, Connecticut-based company, provided the Federal Home Loan Bank Board with the first PC module for auditing disclosures in the 12 regions and 39 districts. Brooks Systems also wrote the first reimbursement program for the FHLBB and helped establish disclosure requirements and calculation methods for adjustable-rate mortgages.

Any technology-based solution must focus on the complexities of current regulations and at the same time simplify the process for lenders, while also addressing the issues of accuracy, flexibility and ease-of-use. “I am enthused with the acquisition that brings both of our technologies together, as we forge forward together in the Mortgage banking industry” says Robert Brooks II, president and CEO of Brooks Systems LLC.

Terms of the transaction were not disclosed.

About Evolve Mortgage Services
Evolve Mortgage Services is a top provider of outsourced mortgage solutions and eMortgage technology solutions. Evolve enables companies to eliminate roadblocks and focus their valuable resources on growth. The company’s services empower mortgage lenders, servicers, and investors to reduce inefficiencies in their mortgage loan process and dramatically improve profitability. Founded and run by a team of industry veterans, Evolve provides seamless component or end-to-end loan services and creates custom strategies for each client. The firm has extensive experience in origination and post-closing services; institutional, whole loan, and servicing acquisition due diligence; collateral recovery HMDA and forensic compliance reviews; whole loan sales; agency deliveries; and TPR securitizations. Evolve is based in Frisco, Texas. For more information, visit www.evolvemortgageservices.com

About Brooks Systems LLC
Brooks Systems LLC designs and distributes compliance, risk management tools and state-of-the-art software and services. Brooks Systems has been a provider of cutting-edge technology for the residential finance industry for over 20 years and it has serviced and supported over 10,000 clients in all 50 states, Puerto Rico and Canada. Clients include top lenders in the nation, as well as government organizations, mortgage bankers and brokers, credit unions, attorneys, title companies and many more. For more information, visit www.brookssystems.com.

 

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