Originators are still looking for ways to optimize their use of e-closing technology
“We’re seeing a lot of traffic these days.”
Those words, spoken by Notarize’s Andrew MacDougal, sum up the experience most tech companies working the e-closing space have been enjoying over the last two weeks. With originators and their clients forced apart by COVID-19, e-closing tech has provided a lifeline to anyone with a transaction still needing finalization.
But optimizing e-closing platforms requires more than a few keyboard taps or screen swipes.
MacDougal says one of the keys to e-closing success is to ensure the process is a known entity throughout the homebuying process, and that all parties involved are aware of the nuances and unique demands of e-closings from the outset.
“There are conversations that need to be had,” he says, adding that title agents have repeatedly contacted the company thinking they can use its tech to simply put a bow on a deal. That’s not the case.
MacDougal says companies introducing e-closing tech to their originators should steer clear of one particular, anxiety-triggering word: automation.
“People think we’re coming for their jobs or we’re looking to replace that interpersonal connection that people have during the homebuying experience. But we’re not trying to replace title agents. We’re tying to make their lives easier and, in the process, give their clients a much more practical homebuying experience, one that kind of mirrors the experiences they see in e-commerce today.”
Eric Gilbert, chief technology officer at the recently rebranded eClosePlus, says companies hoping to leverage e-closing need to ensure that the platforms they choose can handle as many different documents as possible.
“When you’re trying to get into the e-close world, one of the big hindrances is, if I’m using an LOS, let’s say Ellie May, that doesn’t have integration with any e-close vendor, you’re out of luck,” Gilbert says. While several companies like his promise the ability to work with all lenders, he says “very few people can show and prove it.”
Continuing down the road of due diligence, Gilbert says companies interested in e-closing need to be aware of which states allow such measures.
“From a hybrid side, there’s really no differences across the states, but once you get into notarization, different states have different laws which will allow you to electronically notarize or not,” he explains. “Currently, there’s a lot of legislation going on that’s drastically increasing the number of states [where e-notarization can occur]. There were only a dozen or so states that offered it last month. Now there are 30 that fall under one rule.”
The increasing availability of e-closing and e-notarization options, sparked by the the COVID-19 outbreak, is a trend likely to continue even after the pandemic goes the way of all other crises. Now that consumers have been exposed to the convenience offered by e-closings, they are sure to ask for it going forward.
To capitalize on the enthusiasm, Gilbert encourages originators to offer their clients the choice to opt-out, rather than opt-in, to e-closings.
“In today’s society, every single loan I close needs to go down a digital platform,” he says. “Borrowers love it. They really want to leverage it.”
