Posted by brooke/ca on 9/27/06 3:50pm
Msg #148890

Had a LSI/Wachovia last nite, brw said they were offered to

sign over high-speed internet/and the phone if they wanted to, which sort of freaked out the borrowers, who would rather have a real person to sign with. My question is- is this the enotarization deal? or what????????? We talked about it for awhile, they were great, but felt funny about doing it completely over cyber-space- I don't blame them- how would they know on the other end that it was truly them (brwr) and not someone who had stolen their ID? First time I have heard of this--- anyone care to enlighten? THanks

Reply by CopperheadVA on 9/27/06 3:57pm
Msg #148892

My understanding of eNotarization is that the notary must still meet and ID the signers. Then the notary must have a laptop with the proper software and signing pad, kind of like the ones you use in the stores nowadays when you buy something with your credit card and sign on the electronic pad. Then at the end of the process the signatures and notarizations are all applied at once automatically after borrowers have reviewed and approved the docs on the laptop screen.

Reply by Brooke Squyres on 9/27/06 4:01pm
Msg #148893

Hmmm Copperhead, that is what I thought, but they were

offered to just close over the phone plus hi-speed internet... they did have an account with the lender, but still, there's got to be a DOT, right? to be notarized on a Refi? I t doesn't add up.. even those add-on helocs have to have a notary for the modification of the DOT. Well, maybe they didn't understand, but they seemed VERY knowledgeable about everything.

Reply by Dlars_FL on 9/27/06 4:39pm
Msg #148903

This was posted on Source of Title in July of 05,

Printed from Source of Title, www.sourceoftitle.com.

LSI Launches Online Closing Solution 7/11/2005

Fidelity National Information Services' LSI division has announced the successful conclusion of its pilot for Closing Stream, a Web-based closing solution for mortgage refinance and home equity lending transactions. According to the company, the pilot project confirmed that the patent-pending online closing process reduces loan cycle time, enhances borrower experience and ultimately increases lender revenue.

"We are tremendously impressed with LSI's ability to deliver an online closing solution that creates so many efficiencies," said Jim Kelly, a representative for ING Direct. "With Closing Stream, we have minimized our loan cycle time, resulting in higher application-to-close ratios, improved productivity and reduced cost."

With the Closing Stream solution, LSI controls the entire closing process, eliminating the need to coordinate third-party providers. As a result, borrowers may schedule their closing as early as possible during the application process. Also, since this closing method is primarily Web-based, borrowers may participate in the transaction from any geographic location.

Prior to the scheduled closing, LSI sends the copies of the closing documents to the borrower via overnight delivery. The borrower is only responsible for returning one signed and notarized document to LSI. The returned document is combined with the original closing documents in preparation for the closing. At the scheduled closing time, the borrower logs into the Closing Stream system and dials a toll-free number to connect with an LSI closing representative. Using Closing Stream's online meeting application, the representative thoroughly covers each loan document to ensure the borrower understands all of the details.

During the closing representative's coverage of the documents, any necessary changes to those documents can be completed. If changes are required, the representative electronically coordinates those changes with the lender and reposts the corrected documents on the Closing Stream Web site during the closing process. With accurate documents in place, the borrower answers a series of online questions acknowledging that he or she understands and agrees to the terms and conditions of those documents. All of the audio and on-screen activity during this closing process are recorded and archived for future reference.

"We are excited to unveil the first viable Web-based closing solution nationwide," said Al Verkuylen, the senior vice president of LSI's Strategy and Execution division. "Now, Closing Stream will allow originators everywhere to attend and manage more consistent closing processes."

Reply by CopperheadVA on 9/27/06 5:17pm
Msg #148911

This is really interesting and I can see how it would be of great benefit to both lenders, TC's and borrowers (while unfortunately putting us NSA's out of business!) However, they must keep in mind that not every borrower has a computer and many people who do have one barely know how to check their e-mail. I know someone who does not even know how to forward an e-mail!

Reply by Bonnie_CO on 9/28/06 9:15am
Msg #149022

During this process, how are they able to

verify that the person sitting at the computer, and on the phone with them is actually who they say they are. In the case of an elderly BO, how do they know that Jr. isn't sitting there making grandma sign? Seems like this would open a new can of worms when it comes to mtg fraud.
I agree with Copperhead regarding some people have no clue how to use a computer! My Mom, who is in her 60's ,(still young these days), finally got a PC. She called me all excited that she sent an email, and it "only" took her an hour! Any more, for those of us who use a computer everyday, it's automatic, no big deal, but those who've never used one?

I think it's a great tool for the industry, but I still question the positive ID and the coercion items. I think it'll be a while before it's fully integrated into the industry as a whole.

PS-sorry for any typos, i'm still 1/2 asleep here)

Reply by Charles_Ca on 9/27/06 4:59pm
Msg #148909

Right they are restricted to only three transaction types...

A 1st mortgage refi, HELOCs, and transactions between wholesalers and mortgage brokers. However as it becomes more widespread there will be other companies involved in doing this and eventually ther process will become seamless and only between the broker and borrower. There are tremendous savings involved to the borrower and the process is so much faster and documents can be corrected and exchanged immediately at the signing. This will eliminate a lot of errors and a lot of costs at having to redraw documents and re-sign packages. I believe it is the future. I know if I have to opportunity to do this for loans I originate, it will be much better for my clients and I wold embrace it.

Reply by LauriecPA on 9/27/06 6:14pm
Msg #148921

Re: ECS offers the "no sign" closing, also...

BO's have told me that they have been offered to sign over "dual POA" to them (ECS) and they can conduct the closing without having a notary come to the house. (for the BO's convenience and to save them $$$$) Luckily, some people still feel uncomfortable giving strangers POA, so I can get a few jobs with them here and there!
The first time I had a BO tell me that was with ING, which is mentioned in the previous article. I used to love getting those loans to close back in the day, they were so short and simple! The co. I did them for went out of biz, and about two years went by before I got an ING closing again. (It was with LSI) The BO said he was offered to have the "no sign" closing, but he wanted a notary present. So, I had finally found out why I never got any more ING closings! (I had even written to ING several times over the years trying to find out who did their closings.)

Reply by Tina_MA on 9/27/06 9:15pm
Msg #148965

My brother did this with his ING loan.

He had to sign a POA for an attorney to sign his docs. Then there was a conference call with the lender, attorney and him, while they were all online looking at the docs. My brother said that they would highlight whatever part of the doc they were discussing so that he could follow along.

Once they were finished, the attorney signs off on all the docs, and that's it. My brother said it took about 15 mins on the phone. He received copies of his signed docs later a day or two later.