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]


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10.26.21 – Update: New Date for HUD-Held Vacant Loan Sale 2022-1 (“HVLS 2022-1”) – Now December 1, 2021.

09/21/2021

The U.S. Department of Housing and Urban Development (“HUD”) has announced an update to the date for the upcoming HUD-Held Vacant Loan Sale (“HVLS 2022-1”). The new date for this sale is now December 1, 2021, which replaces the previous sale date of November 10, 2021.

The sale will consist of due and payable Secretary-Held loans. The loans are first liens secured by 1 to 4-unit, vacant residential properties where the last surviving borrower is deceased. This sale will include increased bidding opportunities for non-profit and state & local government purchasers.

Entities interested in participating can contact the Office of Asset Sales Single Family Transaction Specialist at 1-844-709-0763 or email [email protected] for more information.

For prospective bidders to this sale, please refer to the section on this webpage entitled, For Prospective HUD Asset Sale Bidders, to become a qualified bidder and receive the Bidder Information Package for HVLS 2022-1.

Brief Takeaways from MISMO’s Winter Summit By Tim Cooper, Manager, Digital Practice

02/08/2022

The U.S. Department of Housing and Urban Development (“HUD”) has announced an update to the date for the upcoming HUD-Held Vacant Loan Sale (“HVLS 2022-1”). The new date for this sale is now December 1, 2021, which replaces the previous sale date of November 10, 2021.

The sale will consist of due and payable Secretary-Held loans. The loans are first liens secured by 1 to 4-unit, vacant residential properties where the last surviving borrower is deceased. This sale will include increased bidding opportunities for non-profit and state & local government purchasers.

Entities interested in participating can contact the Office of Asset Sales Single Family Transaction Specialist at 1-844-709-0763 or email [email protected] for more information.

For prospective bidders to this sale, please refer to the section on this webpage entitled, For Prospective HUD Asset Sale Bidders, to become a qualified bidder and receive the Bidder Information Package for HVLS 2022-1.

Falcon Digital Mortgage July Newsletter

07/28/2022

I recently came across a study in the latest issue of theJournal 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.