With the nation's largest lenders actively looking to rework the details of many at risk loans this creates an easy hit to ramp these efforts up in the right way. Most of the industry has grown these groups rapidly both in volume and staff and the rate of that growth has caused many lenders to cut corners to simply keep up with volume.
This modification can be a simple process.... a document is prepared which summarizes and presents the new loan structure and is printed and shipped directly to the customer. What stands out is that this newly signed document is not recorded or notarized. The last two points are the biggest issue that has held many back from driving eSignature solutions into the mortgage process.
Let's summarize the opportunity:
- Motivated Borrow who needs to execute this document to stay in their home
- High Cost paper fulfillment process ($6-$12 per based on shipping method)
- Speed and Shortening of the decision has significant impact
- Cost of a delayed return can have broad facing implications
- High volume and constrained resources
Given that everyone I've talked to is executing these mods as an exception paper based process and literally no one I've ran in to is using eDelivery/eSig to expedite these signatures what I'm curious about is why so few of our lenders haven't automated this process.
Moving eSig into this scenario does two things. 1) it get an organization moving with an eSignature deployment and strategically this has high value and 2) it cuts the cost of this cycle by nothing less than a week or more and the costs by 70%.
What I don't fully understand is why the nations largest servicers haven't moved on this opportunity aggressively and maximized their ability to scale this process and leverage the opportunity to set themselves up to reuse a very manageable investment for years to come. Challenge your process now, move forward knowing that solutions exist that can be deployed in weeks and trust that your investing in a technology that has some legs. What are you waiting for?
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