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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 44 June 2023 F E A T U R E provider or make a splash about a new digital- friendly lending partner. Many times, the digital capabilities they claim are superficial at best. Beware of these "fake-it-'til-you-make-it" providers. How many RONs or eClosing trans- actions have they performed in the market you are seeking to serve? How many on their staff have extensive training and experience managing digital closings? If they claim to provide RON services, do they only provide a notarial experience, or a comprehensive clos- ing service? The difference could impact the customer experience and the cost/time savings a lender otherwise hoped to achieve by adopt- ing digital closings. Lenders also need to go beyond the title or closing firm they are considering to spearhead their digital closing experience. Even the most experienced title agents need to rely on third- or fourth-party providers for their technology or other elements of a typical digital closing process. So, who are those partners? How many digital closings or RON transactions have they performed? What kind of technology is being used? Is the lender's client data secure while in the hands of those fourth-party providers, and what types of protocols do they employ to ensure data security? The Vetting and Selection Process T hese questions should also be asked of the closing or title business to which a lender assigns its digital closings. Do they understand the current regulatory and legal landscape in the markets where the digital closings will be performed? This is critical, as the rules are cur- rently changing at an accelerated pace. What, if anything, are they doing to keep abreast of that regulatory landscape? The partner's technology also needs to align with a lender's own workflow processes and platforms for the digital closing partner- ship in order to succeed. How does a potential partner's process fit with the lender's LOS or post-closing process? More importantly, does the potential digital closing provider use tech- nology or have a plan to remain "future proof?" The standard for digital closings today is only likely to rise and evolve—and quickly. Just as a lender seeks to avoid investing in an LOS that will be obsolete three or four years after the investment is made, a digital closing partner that is planning to stay on top of change is a much more attractive option. Finally, keep in mind that the digital clos- ing field is still in its infancy. As such, there are various pricing models in play. Whether the service or technology is billed per file, via subscription, installation fee or the like, be sure of who will be billing you, when they will be billing you, and exactly how much they will be billing you. You may see invoices from the provider, program, or platform (or all of them). Don't allow yourself to be surprised—it will impact your ROI if you don't account for it in the first place. The digital revolution within the mortgage industry is quickly moving from LOS and POS technologies to digital closings. The fact that lenders continue to invest in closing tech- nologies and relationships in spite of a down market can attest to that. Service providers in the closing space are also racing to meet this increased need, but lenders need to do their due diligence to ensure that they are not partnering with someone who has cut corners to get there. Many times, the digital capabilities they claim are superficial at best. Beware of these "fake-it- 'til-you- make-it" providers.