"There are going to be way more closings that are going to fall in the hybrid category, or are going to have to migrate from one to another. The key to bringing eClosings to reality is to have the flexibility to both choose what type of closing is needed for each customer and transaction and to be able to call an ‘e-audible’, if-needed, mid-transaction.”
"For some, may not want to go fully paperless. It’s just going to be another consumer option."
“The RON push has helped other people realize they may not want to do remote online notarization, but it’s helped push the face-to-face in other states, at least to do something with eNotary,”
"Not every closing is going to be a candidate for remote online notary. Sometimes it’s just a matter of, it gets people talking. It’s that seemingly radical thing out there that got people talking."
"Investor buy-in What may continue to be the biggest issue is the lack of investors willing to purchase eNotes and eMortgages, other than the government sponsored enterprises (GSEs)."
“The biggest issue is getting investors to buy notes,” he said. “I just had a debate about RON and I said, ‘RON doesn’t matter if the investor doesn’t buy an eNote.’ That’s why you have hybrids. It’s not that lenders want to do hybrids. They want to do fully electronic, whether RON or in person. It’s who they sell their loan to that won’t accept an eNote, which means you have to do a hybrid to paper out the note until they do. So until we get more investors than Fannie and Freddie buying these, we are not going to see paperless eClosings[become mainstream].”
Coordination and integration
“The issue though is there are not a lot of enterprise systems out there like ours that integrates all the pieces for eNote, eNotary, eClosng, eSign, MERS eRegistry and full eVault capability,” Anderson said. “There are still a lot of key transactions that some of our competitors use multiple players for, which means it’s a different user experience. It’s not integrated. It’s a handoff. Everybody is going to charge a separate fee and multiple contracts, and for those companies that are looking left an impression that this is not real yet.”
“The industry needs to explore solutions that would either integrate title documents into lenders’ eClosing systems or establish centralized electronic signing platforms that integrate documents from lenders and title agents to minimize the need for closing agents to learn multiple systems,” Penugonda said."
"Ladd agreed that lenders need to be aware as they move forward with electronic initiatives that these are very location-driven decisions.
“There is going to be a lot of variation and local customs and practices that are going to have to be taken into consideration,” he said. “It’s not just going to be enough to have your legal team peruse the statutes and see that they’ve adopted UETA or URPERA, but what are other local practices that come into play and that would impact how you act, even in an eClosing."
"It also became evident that unless warehouse lenders, investors and servicers participate on a much larger scale, electronic mortgage closings will not become mainstream."
“We learned that there are very few investors and warehouse lenders that currently purchase or invest and service electronic promissory notes, which can stifle lenders who are seeking to make electronic mortgages widely available to their customers,” Stallworth said."
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