TheMReport

26 | TH E M R EP O RT FEATURE Settling the Matter How can lenders adopt e-closings to increase their volume of digitally- executed loans? The answer might lie with settlement agents. By Nancy Alley I t is no secret that title and settlement agents play a cru- cial role in the execution of the mortgage closing process. However, as the industry contin- ues its push towards widespread e-closing and e-mortgage adoption, this role is often overlooked. That oversight, or failure to account for title/settlement buy-in, can be one of the biggest stumbling blocks to e-closing adoption. Thanks in part to the elimina - tion of other barriers to entry, such as the legislative momentum behind remote/electronic notari- zation and wider acceptance of e-recording, the "all or nothing" mentality regarding digital mort- gage adoption has largely given way to a more pragmatic, "as 'e' as can be" approach. Of course, compressed margins and the rising cost to originate have also pushed lenders to become more practical in their approach to digital mortgages. While estimates from document preparation and e-closing provider Docutech put the savings on a fully digital loan transaction at approximately $244 per loan, hybrid e-closings, which can be done for nearly all loans, still net lenders between $155 and $165 in savings on a per-loan basis. Because this shift in thinking has accelerated the adoption of digital mortgage strategies, includ- ing hybrid e-closings, lenders must start factoring settlement into their digital mortgage plans in order to achieve success. By making e-closing adoption as easy as possible for settlement, lenders can dramatically increase their volume of digitally executed loans, resulting in financial and opera - tional benefits on all sides of the transaction. Enhancing Customer Experience M ortgage lenders are not alone in their quest to improve customer satisfaction, drive down operating costs, and increase effi- ciency. Title and settlement agents share similar aims and despite lingering perceptions of the title industry being "old school" or "outdated," title professionals are as invested in driving innovation and leveraging technology to solve many of the issues they face on a day-to-day basis. For example, title agents have begun embracing wire-fraud-prevention technology to safeguard consumer funds in the absence of regulatory solutions to address this growing issue. When it comes to e-closings, there's a lot to be gained in terms of efficiency on both sides of

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