Posted by Charles_Ca on 4/10/08 5:05pm
Msg #243101

New technology is awesome...

I just got out of a seminar put on by the California Association of REALTORS demonstrating a new technology. The seminar was put on by a VP of Institutional Lending from a major bank. The way it is envisioned is that when an application for a loan is taken a signature is encrypted that stays with the loan through the entire process of the loan and can be used by only one individual, similar to a credit card with a PIN number. The loan is completely in the control of the lender but the borrower can log on and watch the progress of the loan and know the terms as they are added and compiled. The borrowers can also approve the docs as they are being generated and any revisions that are made: the final docs are already pretty much approved at this point. Testing with focus groups has indicated that the borrower feels more part of the process and is much more comfortable with the loan at closing, having been part of the process: there are no surprises at the end. The technology is ready and is being reviewed for compliance with the Mortgage Industry Standards Maintenance Organization's data standards. There are competing technologies being evaluated also and it appears that this technology will be available to most brokers in the very near future. The primary question left is whether this electronic imaging will take the place of legal documents of record.

Reply by Linda_H/FL on 4/10/08 5:15pm
Msg #243108

"The primary question left is whether this electronic imaging will take the place of legal documents of record." - only as soon as the individual recording districts are able to accept the digital recordings...I don't think it's too far in the future, though...some say at least 5 years, but after reading all I've been reading I think it's more like 2 years....MHO

Reply by Charles_Ca on 4/10/08 8:01pm
Msg #243127

Vince did a great writeup on similar technology later on

this page. This is the direction things are going and I really think that once the bugs are worked out everyone will be happier. I do believe that there will be less angst between LO, borrower, TC and Notary: the SS is the superfluous value in this equation.

Reply by Charles_Ca on 4/10/08 8:26pm
Msg #243133

PS: Vince's message is 243125, it's very worthwhile. n/m

Reply by Sharon Taylor on 4/10/08 11:07pm
Msg #243163

The key is no surprises for the borrowers, I think

If this new technology is set up the way you describe, it would certainly eliminate those surprise "but my broker told me it was a fixed mortgage" and "but I was told the payments would be $735, not $810" and "but I understood we were getting a 6% interest rate, not a 7-1/4% rate" and "how come the closing costs are 8,943 - I was told they would be around 4,000" situations when the notary sits down at the table with the borrowers.

Reply by Eveline Crozier on 4/11/08 11:01am
Msg #243215

Re: The key is no surprises for the borrowers, I think

Hear! Hear! no surprises for borrowers: That would be sooo nice. I just had a closing 2 days ago where borrower did not know they had a pr -payment penalty for 3 yrs. Rate was 9.5% (ouch!). They were supposed to refi in 6 months for a lower rate. So of course LO gave them the old song and dance that they will waive PPP when they refi. So they signed.....Very nice couple in their sixties. I wish they had not signed.