Business & Finance
01:39 PM
The Analytics Job and Salary Outlook for 2016
Jan 28, 2016
With data science and big data top-of-mind for all types of organizations, hiring analytics profes ...Read More>>

Mortgage Industry Turns To IT For Faster, Cheaper Closings

HUD has shelved proposed market reforms, but the industry is striving for technology that will achieve the same goals.

Mortgage-industry execs are welcoming a decision by the Department of Housing and Urban Development to shelve proposed market reforms for the consumer-mortgage process. The HUD changes would have encouraged mortgage lenders to disclose more fully the final costs of closing fees such as title insurance and appraisal. Critics say the mortgage industry is working on technology solutions to achieve the same goals as the HUD reforms, e.g., timelier and less-costly closings.

Elizabeth Green, CIO at Paragon Financial Corp., a specialty mortgage banker focused on the subprime lending market, says the industry is moving toward a fully electronic closing process.

For example, eLynx Ltd. offers uSign, an electronic document-delivery system that lets consumers review and digitally sign loan documents securely via the Internet. Principal Residential Mortgage Inc. licensed uSign earlier this month and plans to put it into operation later this year. The system complies with the Electronic Signatures in Global and National Commerce Act and the Uniform Electronic Transaction Act, laws that recognize the validity of electronic documents in legal proceedings.

Celent Communications analyst Christine Barry says that "by deploying next-generation technology, the mortgage industry can benefit even more than it could under the proposed [HUD] regulations."

Still, barriers to full electronic closing exist; most municipalities aren't equipped to electronically record deeds. Says Green, "Until the document is recorded in the public record, it's an unenforceable transaction."

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
How to Knock Down Barriers to Effective Risk Management
Risk management today is a hodgepodge of systems, siloed approaches, and poor data collection practices. That isn't how it should be.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.