Quicken Loans will begin closing mortgages using electronic promissory notes, marking a critical operational change for the tech-savvy lender.
While the Detroit-based lender is highly regarded as one of the industry’s most innovative lenders, much of its consumer-oriented technology developments focus on digitizing the initial application process with self-service tools in the industry. online and electronic documents. From now on, this approach will extend to the entire lending process.
Quicken Loans will manage electronic notes using technology from eOriginal, a Baltimore-based e-doc and e-vault technology provider.
“Quicken Loans has worked diligently to provide clients with a fully online mortgage experience, from application to closing. The next step in this evolution is to digitally transfer the rating to industry stakeholders who need it, ”Jay Farner, CEO of Quicken Loans, said in a press release.
“The online mortgage process provides homebuyers with precision, clarity and transparency, in addition to speed and convenience. We are passionate about innovation and will continue to invest our time and resources in technology that helps us break down the cumbersome barriers of the old fashionable mortgage process, ”he continued.
The companies have not specified when Quicken’s electronic note capabilities will be available or to what extent its loan productions will use electronic notes.
From an investor perspective, the most critical element of a mortgage transaction is the electronic note, according to eOriginal. And in addition to offering electronic notes, Quicken will also be able to securely store authoritative copies of electronic notes and deliver them to custodians and the aftermarket with the supplier’s electronic safe.
Earlier this year, Fannie Mae selected eOriginal to support its new generation electronic safe.
Electronic tickets have been legal in the United States since 2000. Yet many participants in the mortgage industry have been hesitant to adopt the technology because there is little precedent for verifying whether courts will enforce foreclosures when the loan has been electronically closed.
However, in separate foreclosure cases in New York and Florida last year, judges ruled that electronic loan transfer histories from electronic signatures proved plaintiffs had standing to foreclose.
Other lenders have also made recent progress with electronic fencing and electronic notes. North State Bank Mortgage in North Carolina began offering borrowers a fully paperless closing process earlier this year, selling the electronic tickets to Dallas-based Mid America Mortgage. And United Wholesale Mortgage, based in Troy, Mich., Has completed what it says is the first virtual close on a loan in Chicago on July 28.
