As the mortgage industry looks to save time and money while boosting productivity, businesses are increasingly implementing electronic document management software. These technologies allow firms to realize new efficiency from going paperless, which enables them to better serve borrowers, improving relationships and driving profit.
Reverse Mortgage Daily reported on this trend, revealing that the Federal Housing Administration (FHA) is looking to deploy new tools to allow borrowers the option of electronically signing loans before becoming insured by the agency. However, according to the source, while e-signing for FHA loans is a distinct possibility, it may be at least two years before this capability becomes a reality.
"The e-sign and e-closing enhancements would enable the FHA to begin insuring e-mortgages, but won't go into development at least until the 2015 fiscal year and have not yet been included in the FHA's budget, National Mortgage News wrote, according to Reverse Mortgage Daily.
Accelerating all processes
Still, these efforts suggest that the industry is committed to capitalizing on the benefits to new digital solutions. National Mortgage Professional reported that while previously, loan documents had to be stored in file cabinets, complicating retrieval, new paperless technologies have greatly enhanced communication and collaboration. While the loan transaction process took months with paper-based systems, new tools have significantly shortened this timeframe. Additionally, employees no longer have to search through stacks of paper to find information, which enables faster decision-making. The cost savings that come with deploying this software are noteworthy as well, as firms no longer have to continually invest in paper, toner, postage and other supplies.
New document imaging technologies with intelligent capture features can automatically recognize and convert critical files, which can then be customized and edited by authorized users over the web. National Mortgage Professional pointed out that this reduces time-consuming manual tasks and minimizes any room for error. Additionally, new mobile applications enable users to view these digital documents from anywhere, further driving flexibility and productivity. The news source also emphasized security benefits to paperless tools, as they eliminate the risk of records getting compromised or lost in the mail.
The convenience, security and cost savings that come with electronic document management have become impossible to ignore. As more companies within the mortgage industry integrate these solutions, these firms can greatly enhance loan production procedures for a significant competitive edge.
Brought to you by Image One Corporation providing complete information governance since 1994.