Falcon Digital Mortgage August Newsletter

RON is Heating Up

RON has been getting a lot of attention the past few weeks. At the end of last month, the House officially passed the Securing and Enabling Commerce Using Remote and Electronic Notarization (SECURE) Act which creates federal minimum standards to allow notaries nationwide to perform RON transactions. Around the same time, the Wall Street Journal also ran an article on how mainstream this type of closing has become.

As of today, RON is allowed in 43 states, up from 22 at the outset of the pandemic and in Delaware, Massachusetts and Washington D.C. there are RON-related bills close to becoming law.

If the SECURE Act becomes federal law, and most observers believe it will, this will give significant relief to homeowners and buyers by allowing immediate, nationwide use of RON technology and making digital closings much easier.

The legislation has garnered much support from industry associations including the Mortgage Bankers Association (MBA), American Land Title Association (ALTA) and the National Associations of REALTORS® (NAR).

– Armando

 


Mid-Year eUpdate

We are more than halfway through 2022 and despite the market slowdown, digital adoption is still growing. Check out our summary of some of the biggest developments in the digital mortgage space so far this year.

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People on the Move

eMortgage expert and veteran, Carmelo Bramante, is the new Senior Policy Advisor at Ginnie Mae. Bramante will be working on the agency’s Modernization initiatives, such as The Digital Collateral Program. Prior to joining Ginnie, Bramante was with Navy Federal Credit Union for 9 years as the Manager of Regulatory Compliance and Public Policy.

 

 

 

MISMO Seeks Public Comment on eMortgage Resources

MISMO is seeking public comment on three key industry resources — The MIMSO Business Glossary, The eMortgage Glossary and the eModification Reference flyer– to help
accelerate the industry’s digital transformation. Comments for the Business Glossary are due by 9/5; comments for the eMortgage Glossary are due by 10/4, and comments for the eModification Flyer are due by 10/4. Comments should be sent directly to [email protected]

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Industry Veteran Walter Allen Joins Falcon

We’re excited to announce that Walter Allen has joined Falcon Capital Advisors as Managing Director. In this role, Allen will be responsible for business development across Falcon’s major practice areas: financial institutions and government advisory services and our eMortgage
consulting practice. Welcome to the team, Walter!

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Community Bank Now Offering Hybrid Closings

OSB Community Bank, an Illinois- based bank, is now using SimpleNexus’ Nexus Closing to support hybrid closings. The bank will use the tools from SimpleNexus to facilitate a “from anywhere” borrower experience from application to closing.

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Upcoming Events

It’s almost that time — Fall Conference Season! Next month, Falcon will be attending:
MBA Risk Management, Quality Assurance and Fraud Prevention Forum 9/11-9/13 National Mortgage News’ Digital Mortgage Conference 9/13-9/15
MISMO Fall Summit 9/25-9/29

Contact [email protected] to set up a meeting. See you there!

 

 


Have an eMortgage related news item you want to share? Want to make sure you and your team are on our distribution list? Have a question about Falcon’s digital mortgage advisory services? Send us a note at [email protected]

Falcon Digital Mortgage July Newsletter

Tipping Point for eMortgage Adoption?

I recently came across a study in the latest issue of the Journal of Structured Finance by MBA Chief Economist Mike Fratantoni about the acceleration of eMortgage adoption. The study looks at the jump in eMortgage adoption over the past few years, specifically fueled by the pandemic, and why the market may currently be at a tipping point moving toward a period of more rapid adoption.

Some key findings of the study show that while eMortgages are likely to result in lower costs and a faster process, cost advantages alone have not been sufficient enough to spur adoption.

“Mortgage industry participants should begin to consider the implications of this technological change. With more widespread adoption, multiple aspects of the mortgage process will accelerate, likely shortening application-closing and closing-sale time frames. Although it may not be business imperative to be able to handle eMortgages today, it may well be soon. As has been seen with other episodes of technology adoption in the financial world, once the ground shifts, it can shift further quickly.”

So what is holding lenders back from adopting digital solutions? I discuss some of these obstacles in my latest HousingWire Q&A (featured below). As always, our team of digital experts are here to field any questions you have about how to start or further your company’s digital journey.

-Armando


Guaranteed Rate Launches End-to-End, Digital, Fixed-Rate HELOC

Guaranteed Rate launched a new fixed-rate digital HELOC designed to help homeowners quickly access their equity through an end-to-end digital platform. A timely solution considering homeowners gained a whopping 35% in equity in 2021, resulting in more homeowners choosing to tap their home’s value to pay off high-interest debt or fund home improvement projects without affecting their home’s low mortgage rate.

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The Obstacles to a Digital Mortgage are Changing

There’s no question that a digital-first way of doing business is becoming the norm and the demand for digital in the mortgage industry is only growing. HousingWire recently spoke with our C E O Armando Falcon about the continued growth of digital mortgage solutions such as eClosings and what lenders can do to implement eMortgages into their business models.

 

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Can Digital Closings Help with Housing Affordability?

ALTA CEO Diane Tomb believes so. In a recent HousingWire article, Tomb said: “With revenue tightening and volume slowing, it is becoming increasingly important for companies to adjust costs. As a result, lenders and title companies are seeking ways to invest and implement solutions that will further streamline operations, grow market share, remain competitive, and improve borrower experience while providing increased ROI. One avenue to reduce cost and streamline the closing process is to offer digital closings.” To help drive the adoption of digital closings, ALTA partnered with MISMO to be the sole provider of title and settlement agent data for the MISMO e-Eligibility Exchange, powered by Snapdocs. The e-Eligibility Exchange serves as a central source of information on the criteria that impact digital closings.

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RON Updates

Two more states have passed RON legislation — North Carolina and Delaware — bringing the total number of states with RON legislation to 41 and SoftPro has just released a new product that has both eSign and RON functionality. So, what’s on the horizon for RON? It’s unclear, especially as we wait for Congress to enact legislation that would permit RON nationwide. However, according to Savvy, there are still some remaining obstacles that stand in the way of full adoption, including lack of awareness, regulatory acceptance, and training/education.

 

 

Former Head of FHFA Mark Calabria Joins Evolve’s Advisory Board

Mark Calabria, the former Director of the FHFA from 2019-2021, has just joined Evolve Mortgage Services‘ advisory board. Commenting on the news, Evolve CEO Paul Anselmo
said: “Mark has impressed us with his business acumen, the caliber of achievements, and invaluable expertise. The vast array of talent and knowledge Calabria brings will help accelerate our growth and expand our digital footprint as we continue to evolve our solutions to change the way loans are bought and sold in the marketplace.”

 

 


Have an eMortgage related news item you want to share? Want to make sure you and your team are on our distribution list? Have a question about Falcon’s digital mortgage advisory services? Send us a note at [email protected]