The main problem for lenders is not simply switching internal systems to process mortgages electronically--it's in converting external systems to do so. In addition to making changes within the company, lenders have to convince the notary, the title company, the investors, and so on to change their systems to be compatible with e-mortgages. The challenge is undeniable, but is it worth it?
I think e-mortgages are inevitable. They're going to become the norm whether we like it or not. But, in the end, I think they also make sense for lenders. In light of ever increasing regulation, the automations involved in e-mortgages greatly diminishes the possibility of error that can be easily made on paper.
As the rules keep piling on, it simply becomes easier to process the paperwork electronically. E-Mortgages are the future. But, rather than fighting it, let's embrace it. All in all, it's good for us. It's going to make our lives much easier.
David Lykken is 40-year industry veteran who has been an owner operator of three mortgage banking companies and a software company. As co-founder and Managing Partner of Mortgage Banking Solutions, David consults on virtually all aspects of mortgage banking with special emphasis executive leadership development, corporate strategic direction and implementation as well as mergers & acquisitions. A regular contributor on CNBC and Fox Business News, David also hosts a successful weekly radio program called “Lykken On Lending” (www.LykkenOnLending.com) that is heard each Monday at noon (Central Standard Time) by thousands of mortgage professionals. Recently he started producing a 1-minute video called “Today’s Mortgage Minute” that appears on hundreds of television, radio and newspaper websites daily across America.
It seems like electronic mortgages are being pushed more and more by the regulating agencies. In the next 10-20 years, it seems like a reasonable estimate that nearly all mortgages will have gone digital. Some lenders are finding this reality difficult to deal with.