TheMReport — News and strategies for the evolving mortgage marketplace.
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8 | Th e M Rep o RT INSIDE THE INDUSTRY Paperless Processes Problematic for Lenders A recent survey found thAt chAllenges mount for industry professionAls looking to mAke the switch. A s the industry moves further and further toward eMortgage and paperless initiatives, a new survey from Xerox shows compliance demands are having the greatest impact in the shift to technology- powered solutions. Xerox released recently the findings of its ninth annual "Path to Paperless" survey, in which the company polls mortgage profes- sionals involved in all aspects of the industry on their eMortgage plans and predictions. According to the findings, 88 percent of respondents cited "pressure to comply with indus- try regulations and standards" as the greatest impetus behind their paperless initiatives as automated processes become more relevant. Looking ahead to compliance demands, 63 percent of profes- sionals noted having electronic document solutions already in place, an increase from 55 percent in 2012—indicating an increased commitment to adopting paperless technologies in the near term. On the other hand, enthusiasm for eMortgages has waned, with 68 percent of respondents saying they think the mortgage industry will close more than half of all loans as an eMortgage within the next seven years, down from 79 percent in the 2012 survey. Part of that decline may stem from the number of challenges fac- ing those who depend on various technologies for their business. In the survey, 74 percent of profes- sionals said the lack of eSignature acceptance on HUD origination has hindered their paperless plans; the same number said their plans have been affected due to limited acceptance of eNotes from the secondary market. However, just because interest has wavered doesn't mean there isn't some demand, says Ken Marlin, VP and general manager for Xerox Mortgage Services. "In fact, 82 percent of respondents experienced an increase in eDis- closures, and 32 percent noted an increase in eClosings," Marlin noted. Tough Transitions While most companies have embraced technological advances, others need a bit more assistance and are turning to these innovations for help. No matter their take on the current technological challenges, the vast majority—97 percent—of respondents agreed that online collaboration between internal and external participants in the loan process "is a key component of making an office paperless." NAR Study Shows Insights to Homebuyer Trends the study focused on buyers stArting And finishing their seArches online. T he National Association of Realtors (NAR) sent out a national survey in July 2013 to homebuyers who had made their purchase within the previous year. The data collected from 8,767 respondents brings fresh insights into all phases of the homebuying process and helps recognize emerging trends. The study was conducted to help real estate professionals understand the needs and expectations of their clients. What did the study uncover? The first step in the process for 42 percent of buyers was searching on the web 74 percent of professionals said the lack of eSignature acceptance on HUD origination has hindered their paperless plans.