Mortgage Electronic Registry Systems or MERS has reported a rising curve in the number of eNotes which is a testament to the number of people who are willing to walk the change. The digital landscape with all the added tools is a change that was waiting to take the lending industry to its rightful potential. With the numerous benefits the digital loans offer, the only stagnation to growth can come from a lack of credit-worthy consumers as there is never a backlog of pending loan applications to process.
Traditionally, a mortgage or loan involves a promissory note that requires a lot of paperwork to be printed, signed, scanned, and emailed. With eNotes for mortgage, all of these manual tasks are eliminated. Once a borrower’s loan application is approved, they simply need to analyze and sign an eNote, which is accepted in court as an equal to a traditional promissory note. Other digital tools that complement an eNote are eSignatures, eRegistry, and eVaults. Every element that provides an end-to-end solution should be part of the whole digital landscape of a product.
Here are a few advantages that are compelling and desirable for lenders to adopt eNotes
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Faster Closings
Once the loan application is approved, waiting for a client to come and sign the agreement will soon be a thing of the past. With eNotes, a borrower can sign electronically using their public key. Upon successful completion of the verification and payment of closure charges, the loan term sheet is signed.
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Saves Time & Money
As explained there is no need to print, email, or deliver the papers through courier in case of eNotes.
A borrower need not even commute up to the bank’s branch office. The elimination of time-consuming tasks also saves money. It has collateral benefits in the form of ecologically sustainable practices as paper consumption is reduced and will have a better impact on the environment.
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No More Missed Information
eNotes verify all the details before passing them onto the next stage of the registry. When a particular information is insufficient or not matching with verification records, or a signature is missed the system alerts about the error and prompts the client to move further in the course of the application.
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Less Fraud
A person cannot impersonate or act on behalf of another person and obtain a loan. The signature used to sign an electronic promissory note comes with layers of encryption and two keys.
The public key can be accessed only by people who have been authorized by you. The audit trail also ensures that the people who have viewed the eNote are transparent to the borrower and the lender equally.
Conclusion:
Unless digitization is leveraged to the extent that it is a mainstream practice, an industry or an organization cannot porcelain the business to be fully automated. Tesla is not a driverless technology if the cars can drive well in cold regions but not hot climates. Likewise, a complete rollout of automation only can change the loan origination turnaround and experience both for the internal employees and consumers and improve their experience in using the service.
