HousingWire recently spoke with Dominic Iannitti, President and CEO of DocMagic, about the adoption of eNote.
house line: Where does the industry stand in terms of digital adoption and, more specifically, eNotes adoption?
Dominic Ianetti: When the pandemic hit, many lenders were considering or at least researching digital implementations, putting industry adoption on the fast track.
Today, lenders are looking to leverage mortgage technology to simplify the lending process. Many people are already digitally capable, and with so many warehouse lenders ready to fund eNotes, and service providers ready to support them, eNotes’ popularity is growing as the investor space continues to expand.
HousingWire: Talk to us about DocMagic’s lender setup process to get started with Total eClose, eNotes, and secure eVault.
Giannis: We’ve worked with many lenders who started out in a hybrid model, then transitioned to using eNotes, and in many cases closed completely paperless.
eNotes is a game changer for risk reduction, processing speed and overall efficiency. By leveraging eNotes and DocMagic’s award-winning eVault technology, lenders can quickly start experiencing a range of eClosing benefits. Our eVault technology has been an industry leader for many years, providing us with expertise in implementing and supporting key aspects of eNotes.
DocMagic’s electronic settlement team has personally overseen thousands of electronic settlements. Whether setting up MERS, implementing eVault to securely store notes, working with eNote-ready investors, vault lenders, or servicing eNotes, we’ve written a playbook on how to make it happen for lenders and their supply chain partners.
HousingWire: What are some efficiencies of eNotes? How will lenders who implement eNotes now benefit compared to lenders who are waiting?
Giannis: The convenience of eNotes goes from originator to warehouse, investor, custodian and servicer in seconds. Your employees are more productive and loans can be advanced through the pipeline with just one click.
Quality errors are costly, especially in this environment. It is critical that everything is electronically signed and properly dated. eNote can be instantly registered with MERS, allowing loan delivery within minutes of closing – that’s the real efficiency.
Organizations that implement eNote technology will gain a competitive advantage over those who wait. The efficiency, benefits, and ROI of eNotes are not a good thing, but a must. This is a positive direction for the industry.
HousingWire: What should lenders look for in a long-term electronic settlement provider/partner?
Giannis: Lenders should start by choosing an experienced supplier – thousands of successful electronic settlement transactions. Inexperienced vendors may not have all the necessary components to do business with other vendors in the field.
Lenders should also select vendors that offer all hybrid and fully end-to-end paperless electronic settlements. Your best bet is a one-stop shop for every element of eClosing. Why use one vendor to generate documents and another to generate eNotes?
Finally, look for suppliers who can accommodate your future growth. Some vendors have components for this technology, but can they help you scale to thousands of eNotes by the end of the year? DocMagic offers a fully cloud-based service layer and flexible technology, designed with functionality for every possible electronic settlement option.