TheMReport — News and strategies for the evolving mortgage marketplace.
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30 | TH E M R EP O RT FEATURE a partner can enable a mortgage company to implement digital mortgage technologies that make the best sense now and add on new capabilities later. Regardless of what an eClos- ing vendor claims to offer, lenders need to be sure the technologies being evaluated can be seamlessly integrated into your other mort- gage systems. If they cannot be, your venture into digital mortgage territory could be short-lived. A brief word here about tech- nology: Remember, technology is a business enabler, and a good technology investment is one that generates more value than the tool or method you use today. Ultimately, it becomes part of the fabric of your business. As long as the technology is kept up to date, the eClosing solution you choose could last up to 10 years. For that reason, it's crucial to choose a partner who under- stands your business and has a vision for creating a successful long-term partnership. One easy way to tell whether a prospective partner is ready for a long-term relationship is to find out how long they have been providing eClosing technologies and how many eClosings they have facili- tated, including hybrid eClosings and full digital closings. A quality partner will be transparent with you about this information. Another way to mitigate risk is to change your organiza- tion's culture toward change by pursuing continuous business- process improvements. If change is difficult for your organization, start by taking small bites and get your organization into the habit of making regular small changes comfortably. Foster a commitment within the organization to get better each day. Eventually, being comfortable with change will make it easier to adopt and imple- ment digital mortgage technology and electronic closings. Move Ahead Without Fear W ith the pace of innovation accelerating, lenders are finding themselves in a whirlwind of new technologies, processes, and solutions that essentially cre- ate new layers of innovation upon previous innovation. This only means one thing: Don't wait. Pay attention to how other organizations are succeeding and how the industry is changing around you. If you see eClosings and digital mortgages in your future, but you haven't started implementing these yet, start right now. Develop a plan that incorporates the people, processes, and technology that you have and the additional resources you'll need, then develop a roadmap that puts your vision of a digital mortgage future on the path toward reality. Then allow digital transformation to become a daily part of your business discussion and leadership. For most businesses, the old adage that "if you aren't chang- ing, you are dying" is true. For too long, however, most mort- gage companies have avoided significant change when it comes to digital mortgages. They have taken a stance and are resistant to change as though it is an enemy. Successful companies, on the other hand, understand that change is critical to growth, and they embrace it. I believe that when companies embrace change, they are forced to face their fears. The interesting thing is that the more quickly you face your fears, the more quickly you can overcome them. When you have done that multiple times, the fear of change no longer becomes an obstacle to success. Once lenders realize that em- bracing change presents countless opportunities, the key is to de- velop a plan, evaluate technology options, and execute the plan. A word of warning, though: eClos- ing vendors are many, but few can truly deliver an end-to-end eClosing. Finding the right one is the Holy Grail. MARK MCELROY is the President and CEO of Pavaso, the nation's only end-to-end digital mortgage-closing platform. As of August 2018, more than half of all eNote closings registered on the MERS® eRegistry were closed through Pavaso's Digital Close Enterprise solution, which enables all par- ties involved in real estate transactions to effectively communicate, securely exchange data, and create fully electronic mortgages. Mark can be reached at MMcElroy@ Pavaso.com. Another common fear among lenders is the fear of change, so embracing fully digital closings has been a challenge. The key to competing under these conditions is to recognize that you don't have much of a choice. When lending is your livelihood, you must constantly adjust your culture to embrace and adapt to changes like a digital transformation.