Featured in HousingWire's eClose Solutions Special Report

[HousingWire] A growing wave of digital adoption is quickly transforming into the new standard, motivating more companies to take the leap and invest in robust technology solutions. As customers experience innovative technology in other industries, they’re starting to demand that from the mortgage industry. While ease of use and convenience are helping to fuel this growth, increased efficiency, reduced costs and enhanced compliance are also major contributing factors, supporting both consumers and businesses.

As this digital shift sweeps through the mortgage industry, DocMagic, which provides some of the most powerful and widely used solutions in the mortgage space, continues to deliver new forward-thinking innovations, including Total eClose, an end-to-end eClosing system that provides everything a company needs for a 100% paperless eClosing.

The seamless digital workflow includes all hybrid eClosing options and is comprised of DocMagic’s comprehensive suite of eSolutions, leveraging SMARTDoc eNotes, in-person and remote online eNotary options, Certified eVault and Investor eDelivery technology.

Learn more about our suite of eSolutions

“We’re positioning our customers for an inflow of new business that will be conducted digitally,” DocMagic CEO and President Dominic Iannitti said. “Once customers understand the true value and savings to be found in aligning with our single-source platform, they realize that offering an incomplete or cobbled-together digital process may leave them hitting the restart button within 12 to 18 months... and searching for a new solution.”

Borrowers can preview loan documents and disclosures prior to closing and electronically sign documents, putting the power in their hands. Total eClose is also intuitively designed to consume data and documents from any source, allowing the system to e-enable and auto-prepare third-party documents not produced by DocMagic.

“Our Total eClose system helps companies provide unparalleled customer service in the new tech-driven world, reducing borrower time at the closing table to as little as 15 minutes,” said Brian Pannell, Senior Implementation Executive.

DocMagic partners with companies to develop a strategic technology plan, so they are best equipped to go to market, easing the user adoption process and providing invaluable eMortgage expertise. Businesses can then close loans faster, compliantly and at a lower cost, with more control and accountability, removing the risk of potential surprises that can create delays at the closing table.

“Total eClose offers a true eClosing solution that involves no paper whatsoever, ensuring accuracy and delivering newfound efficiencies for borrowers, notaries and settlement providers.

“The system allows lenders to focus on increasing market share, making the loan process easier and helping create a superb overall experience,” said DocMagic’s Director of Product Development Michael Morford.

Learn more about DocMagic's seamless and compliant digital platforms for completely paperless eClosings

Dominic Iannitti, President and CEO
As DocMagic’s visionary leader, Dominic Iannitti influences an empowered environment where the entrepreneurial spirit is cultivated. Iannitti founded DocMagic with a commitment to provide the mortgage industry with superior solutions and services that would reduce and eventually eliminate the use of paper. More than 30 years later, that vision continues to inspire the work behind DocMagic’s full enterprise technology stack.

Brian Pannell, Senior Implementation Executive DocMagic’s Senior Implementation Executive Brian Pannell is responsible for all post-sales activities for customers who are adding eMortgage (eSign, eNotary and eVault) as well as post-closing (MERS eRegistry) technologies and efficiencies to their business models. Pannell has initiated industry-leading implementation processes for DocMagic’s entire suite of eSolutions.

Michael Morford, Director of Product Development DocMagic’s Director of Product Development Michael Morford is responsible for the development and implementation of technology solutions. He oversees software development, server management with overall responsibility for the development of interfaces with third-party Loan Origination Systems, Electronic Document Management platforms, and other mortgage service technology providers.

Subscribers to our Compliance Newsletter already know that more and more states continue to pass laws that support electronic notarization which the mortgage industry now relies on to perform electronic loan closings. But considering those laws, and thinking about how a lender can begin to add electronic closings to their portfolio of services, it is helpful to think about the various types of electronic closings that can be done. These range from a fully electronic closing to various forms of ‘hybrid’ electronic closings (also “hybrid e-closing”).

So, what are these types of closings?

Hybrid E-Closings

A hybrid electronic closing simply means that part of the closing is performed electronically while other parts remain paper-based. What part is performed electronically may vary based on the state law’s support of electronic notaries, or simply the technology available to the lender.  

The easiest hybrid e-closing to complete is one where the documents requiring a notary are still paper-based and other documents not requiring a notary are signed electronically using a standard eSign platform such as those used for initial disclosures. In this case, the security instrument and other notarized documents are printed on paper as in a standard closing while other disclosures, and possibly the Note are sent to the borrower via an eSign platform and signed in the closing agent’s office either right before or right after signing the notarized documents on paper. 

Another form of hybrid e-closing is where the note is signed on paper, but all notarized documents and all other documents are signed electronically. This may be helpful for a situation where the loan will be sold to an investor who does not accept an electronic note.

Fully Electronic

Of course, the fully electronic closing, without any use of paper, is the ultimate goal of any move to support e-closings, but even here, there are still options. Some states have passed laws supporting simple electronic notarizations. These allow a notary to use an electronic platform to apply their signature and seal, after verifying the borrower’s identity and signatures in person.  

Many states have passed laws allowing for remote notarizations which take electronic notarizations a step further.  In a remote notary situation, the notary and the borrower need not be in the same physical location but can use two-way audio-video communication to satisfy identity and signature verification requirements. States are striving to make remote notarization safe and reliable by establishing strict requirements for ID verification, tamper proofing and document retention. Remote notarization has been available since 2012 under Virginia law, and is now also available in Montana, Texas, Nevada, and Minnesota.

Regardless of the flavor, borrowers and lenders can save time and make the closing process a more enjoyable experience.

Learn more about DocMagic's seamless and compliant digital platforms for completely paperless eClosings

Directly from within the Lending Pad LOS, users can seamlessly access DocMagic’s loan documents to close loans quickly, efficiently and compliantly

TORRANCE, Calif., June 26, 2019—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced that it has completed an integration with cloud-based loan origination system (LOS) provider LendingPad from WEI Technology LLC, offering its document preparation services directly from within the LendingPad environment.

The new integration was completed in only 60 days and provides seamless access to DocMagic’s fully TRID-compliant documents, state-specific disclosures and paperless digital mortgage process. Users are able to order, generate, manage, receive and deliver electronically signed TRID-compliant documents such as the loan estimate (LE), closing disclosure (CD) and other relevant lending documentation.

“DocMagic believes in establishing system-to-system connectivity to as many parties as possible in order to efficiently and expeditiously complete transactions and close loans on time,” stated Steve Ribultan, director of business development at DocMagic. “Partnering with LOS providers like LendingPad is key to our goal of eliminating paper, ensuring compliance, and making the end user’s job as easy as possible.”

DocMagic’s Audit Engine automates data and document validation throughout key phases in the lending process with continuous compliance checks, providing accuracy at all times. Mutual customers will realize greater efficiency and compliance adherence due to this integration. It significantly reduces time and costs, ensures data integrity, and eliminates errors that can lead to non-compliance.

“We are pleased to partner with the industry-leading loan document preparation provider and look forward to a long-term relationship with DocMagic,” said Wes Yuan, managing director of WEI Technology. “With both of our platforms being completely SaaS and Cloud-based, there are a number of additional capabilities we can jointly leverage to make the life of the lender, originator and borrower much easier via digital lending.”

About DocMagic:

DocMagic, Inc. is the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry. Founded in 1987 and headquartered in Torrance, Calif., DocMagic, Inc. develops software, mobile apps, processes and web- based systems for the production and delivery of compliant loan document packages. The company’s compliance experts and in-house legal staff consistently monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit https://www.docmagic.com/.

About LendingPad®

Residential mortgage professionals created LendingPad’s innovative loan origination system (LOS) to help lenders to make better lending decisions, to provide an exceptional user experience, and to enhance individual originators’ ability to succeed. Leveraging from a highly-scalable cloud infrastructure, LendingPad is a web-based, end-to-end platform offering unique features such as same-file multi-user edit capabilities and real-time updates. LendingPad Network is a hub connecting borrowers, lenders and service providers. The solutions LendingPad offers elevate the efficiency, compliance, and information security of brokers, lenders, and depository institutions. LendingPad is a

Premier Member of the Mortgage Bankers Association and a proud winner of HousingWire's Tech100 award. LendingPad is a product of WEI Technology LLC, headquartered in McLean, VA. Visit the company’s website to learn more https://www.lendingpad.com/.

Media Contact:
Joe Bowerbank
Profundity Communications, Inc.
949-378-9685
jbowerbank@profunditymarketing.com

Testing Information

The first big change with these forms is in the Uniform Loan Application Dataset, or ULAD, for short. This dataset is used to submit your application data to Fannie Mae and Freddie Mac. The GSEs mapped ULAD to MISMO version 3.4.  They used 3.4 because the GSEs would have to engage in extensive use of extensions to have used a lower version of MISMO. They also state that you must use ULAD to submit your data to Desktop Underwriter and your Loan Product Advisor if you're using the new, redesigned URLA. The two things need to go together. If you are interested in the data transmission of your application data to the GSE's automated underwriting systems, they did provide ULAD testing cases on their website, which you can find at fanniemae.com or freddiemac.com.

Changes to accommodate the new form will be enabled prior to the industry use date of July 1, 2019. If your account has access to DocMagic's staging environment, these changes are available for your review at this time. The application will be available during the update. You can activate the update by closing DocMagic Online and relaunching.

What do I need to do?

In order to generate the new forms, you must select "Use 2020 URLA" from the Tools > Options menu within DocMagic Online. If you do not select "Use 2020 URLA", DocMagic will continue to provide you with the existing URLA/Form 1003 until the mandatory date of February 1, 2020, at which time the new URLA form will be applied automatically.

How do I learn more?

The new URLA form introduces many changes in the way borrower information is captured and displayed, including bolstering certain areas of the application such as income verification, military service, assets and liabilities, homeowner counseling, and more in depth property information. For a complete overview of the new functionality we have prepared the following resource page and strongly encourage our DocMagic customers to become familiar with the new content and system changes. DocMagic URLA Resource Page

TORRANCE, Calif., May 16, 2019—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced that the company will participate in Red Nose Day for the second year, transpiring on Thursday, May 23. Now in its sixth year, Red Nose Day is a collective effort focused on ending child poverty both in the U.S. and some of the poorest areas throughout the world.

“Being a part of Red Nose Day helps an incredibly good cause and we are happy to join together to support the event,” said Dominic Iannitti, president and CEO of DocMagic. “Our employees enjoy celebrating the day, giving back in the process, and most importantly assisting children in need.”

Since the launch of Red Nose Day in 2015 as a registered U.S. public charity operated by non-profit organization Comic Relief Inc., the fundraising campaign has collectively raised nearly $150 million. Funds are evenly split to support both domestic and international programs to create awareness, keep children safe, healthy and educated.

NBC will host Red Nose Day on Thursday, May 23 beginning at 8 p.m. EDT. The two-hour event features Kelly Clarkson, Blake Shelton, Kate McKinnon and other TBA celebrity appearances.

This year, DocMagic plans to incorporate a new twist into Red Nose Day, introducing a variety of fun red props. A brief video of DocMagic employees partaking in Red Nose Day last year can be viewed here:  https://youtu.be/D9epRV9vk2Y. 

About DocMagic:

DocMagic, Inc. is the leading provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry. Founded in 1988 and headquartered in Torrance, Calif., DocMagic, Inc. develops software, mobile apps, processes and web- based systems for the production and delivery of compliant loan document packages. The company’s compliance experts and in-house legal staff consistently monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit www.docmagic.com.

About Red Nose Day:

Red Nose Day is a fundraising campaign run by the non-profit organization Comic Relief Inc., a registered U.S. 501(c)(3) public charity. Red Nose Day started in the U.K., built on the foundation that

the power of entertainment can drive positive change, and has raised over $1 billion globally since the campaign’s founding in 1988. Red Nose Day launched in the U.S. in 2015 with a mission to raise money and awareness to end child poverty, and has raised over $95 million to date for the cause.

Money raised goes to the Red Nose Day Fund, which supports programs that keep children in need safe, healthy and educated, both in America and abroad. Beneficiaries include the Boys & Girls Clubs of America; charity: water; Children's Health Fund; Covenant House; Feeding America; Gavi, the Vaccine Alliance; Laureus Sport for Good; National Council of La Raza; Oxfam America; Rotary/End Polio Now; Save the Children; and The Global Fund. Since launching in the U.S., Red Nose Day has received generous support from millions of Americans, hundreds of celebrities and many outstanding partners, including Walgreens, NBC, Mars, and the Bill & Melinda Gates Foundation.  For more information, visit the Red Nose Day website at www.rednoseday.org.  Follow@RedNoseDayUSA on Twitter and Instagram, and on Facebook at Facebook.com/RedNoseDayUSA.

About Red Nose Day: 
Red Nose Day is a fundraising campaign run by the non-profit organization Comic Relief Inc., a registered U.S. 501(c)(3) public charity. Red Nose Day started in the U.K., built on the foundation that the power of entertainment can drive positive change, and has raised over $1 billion globally since the campaign’s founding in 1988. Red Nose Day launched in the U.S. in 2015 with a mission to raise money and awareness to end child poverty, and has raised over $95 million to date for the cause. Money raised goes to the Red Nose Day Fund, which supports programs that keep children in need safe, healthy and educated, both in America and abroad.

Beneficiaries include the Boys & Girls Clubs of America; charity: water; Children’s Health Fund; Covenant House; Feeding America; Gavi, the Vaccine Alliance; Laureus Sport for Good; National Council of La Raza; Oxfam America; Rotary/End Polio Now; Save the Children; and The Global Fund. Since launching in the U.S., Red Nose Day has received generous support from millions of Americans, hundreds of celebrities and many outstanding partners, including Walgreens, NBC, Mars, and the Bill & Melinda Gates Foundation. For more information, visit the Red Nose Day website at www.rednoseday.org. Follow @RedNoseDayUSA on Twitter and Instagram, and on Facebook at https://www.facebook.com/RedNoseDayUSA.

Understanding the New URLA

The new URLA is bringing us into the 21st century. Along with improving accuracy and the clarity of information being provided by the borrower, the coming changes will make the process more efficient for lenders. As with all changes, there is a learning curve. The key to preparing for a smooth transition is understanding the changes, identifying where they will be on the new forms and beginning testing to eliminate workflow interruptions.

The New Forms and How They Work Together

The Borrower Information Document is the main application form and the first form you will notice with formatting changes. The new layout now has a similar format to the LE and the CD which will make adoption much quicker. This form contains most of the information collected on the current 1003. Generally, one of these forms will be completed per borrower instead of seeing borrower and co-borrower on one application. It is important to note however, that you will see a combination of assets and liabilities for joint borrowers. 

Changes in Section 1

The first change to note is at the top of page 1.  The paragraph referencing joint borrowers has been replaced by a space for the Lender Loan No. / Universal Loan Identifier.  Starting in Section 1, where you would normally see borrower and co-borrower side-by-side, the form will now collect individual data starting with personal information. This is also where the borrower will indicate if they are applying for individual or joint credit.

The next change in this top section is the addition of fields for an email address and cell phone. 

There are two new sections within the personal information section of the Borrower Information Document. 

1. Military Service - This section collects information about Military veterans that can be used by the Veteran's Administration
2. Language Preference - This new section allows the borrower to indicate their preferred language. This informational question does not commit the lender to conduct the loan in the selected language. 

The new Employment and Income section has been improved by including those fields side by side for a more streamlined workflow. This new form supports the collection of loan application details that make it easier for underwriters to verify the income by source. For example: Employment entries include the income received at each employer and calls out other sources of income separately.  Section 1e, Income from Other Sources, is the first part of the form that asks the borrower to select from a provided list

Section 2

Assets And Liabilities

This is where  information from the borrower with regard to their assets and liabilities will be collected.  In sections 2a and 2b, there are fields for collecting bank accounts, retirement, and other accounts.  Similar to the last section, users will now be selecting from the categories that are provided.  For other assets, for example, you would put earnest money, sweat equity or other additional assets that the borrower owns.  Also note that this section includes a does not apply checkbox, and if that were true, this would be selected, and the section would collapse in the dynamic version of the form.

Section 3

Real Estate

In the new Real Estate section the table now includes the existing mortgages associated with each property instead of listing them in a separate Liability Section. Here the borrower will list the real estate that is owned by the property address, including certain detail about the property, such as the property value, whether or not they are going to sell it in this transaction, and whether or not there's any rental income from that property.  Immediately below that, will be a field to list any mortgages that exist on the property. This section, as with other sections in the dynamic version, will repeat as necessary until all real estate is listed.

 Section 4

Loan & Property Information

This is the first place on the form that you will see any actual loan information being entered.

In addition to the three choices in the occupancy field there is now a fourth option added for FHA Secondary Residence.  Underneath occupancy are two new questions referencing mixed-use property and manufactured home.

There are three new sections as part of the Loan and Property Information.

1. 4b allows the borrower to list any other new mortgage loans being taken on the property being bought or refinanced.  If there are no additional loans, the borrower will check the “Does not apply” box and the section will collapse.  If there are additional loans, the borrower will add the creditor name, lien type and position, and amount.
   
   
2. 4c is for rental income on purchase loans. The top line allows the borrower to provide expected gross monthly rental income for purchase loans. The lender then calculates the expected net monthly rent income amount. This section applies when the subject property is a 2-4-unit primary residence or investment property.  
   
   

3. 4d is where the borrower will report any gifts or grants that they will receive to help cover the cost of the loan by selecting from the provided list. The borrower would report the asset type, if the amount has been deposited, the source, using that list above, and then the value. This section will also be dynamic and expand or collapse as needed.

Unmarried Addendum

Important Deadlines for URLA

Beginning July 1, 2019, both Fannie Mae and Freddie Mac will allow the use of the redesigned Uniform Residential Loan Application ("URLA") published jointly by the Government-Sponsored Enterprises ("GSEs").  DocMagic systems will be updated to accommodate these new forms for loans with application dates of July 1, 2019 or later.

How do I learn more?

The new URLA form introduces many changes in the way borrower information is captured and displayed, including bolstering certain areas of the application such as income verification, military service, assets and liabilities, homeowner counseling, and more in depth property information. For a complete overview of the new functionality we have prepared the following resource page and strongly encourage our DocMagic customers to become familiar with the new content and system changes. DocMagic URLA Resource Page

Source: Housing Wire—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, has been named as an early winner of this year's HousingWire Tech100 Award. Check out the early list below!

These 10 winners hold some of the most innovative and impactful technology in the housing industry. From innovative startups to technology giants – this year’s winners continue to push the edge of innovation move markets forward. The future is here, and it’s because these companies continue to push the limits of possible.

Here are 10 companies that won this year’s HousingWire Tech100 award, and keep an eye out on April 1 for the full list and for more info on each of these companies.

10 Sneak Peek Winners

Arch Mortgage Insurance

With Arch MI’s RateStar Buydown tool, mortgage originators can customize each borrower’s MI premium to an exact dollar amount — creating a unique MI payment competitors can’t match.

BeSmartee

BeSmartee develops web-based lending platforms for lending institutions. The company utilizes its extensive list of vendor integrations, big data sources, AI technology and process automation to help its clients streamline origination processes for their customers and loan officers, from initial contact into underwriting in minutes using any device.

Blend

Blend is using technology to streamline the mortgage process to create a pleasant experience for both lenders and borrowers. The company, which is already has partnerships with major lenders like U.S. Bank and Wells Fargo, expanded its industry reach in 2018 with first-of-their-kind partnerships with home builder Lennar and Fannie Mae.

Baseline Reverse

Baseline’s web based solutions are helping to power the reverse mortgage industry. The company launched in 2016, and in the last few years, the reverse mortgage industry has warmly received the company.

CoreLogic

CoreLogic is a global property information, analytics and data-enabled solutions provider, which leverages more than 4.5 billion records spanning more than 50 years. This robust collection of data allows the company to proactively identify holes in the mortgage origination process and develop solutions to help fill the gaps.

DocMagic

DocMagic’s suite of technology solutions interconnect critical entities within the digital mortgage ecosystem to compliantly exchange data in real time throughout the lending process. From borrowers to originators, lenders, settlement providers, investors and servicers – DocMagic facilitates 100% paperless mortgage transactions.

LendingHome

LendingHome continues to fine tune its tech platform. Thanks to improvements made in 2018, when a borrower applies for a loan, the tech instantly pulls every home they’ve bought and sold, as well as similar homes near the property under consideration, down to the zip code.

Matic

Matic is a digital homeowner’s insurance marketplace that helps lenders and servicers integrate homeowners insurance into the mortgage process. Matic is disrupting the $95 billion homeowners insurance industry by providing insurance at the point of sale — when borrowers apply for a mortgage.

Moody’s Analytics

Moody’s Analytics grew its capabilities in 2018 when it acquired Reis, a commercial real estate data provider, for approximately $278 million in cash. Reis provides analysis and forecasts for hundreds of metropolitan markets and thousands of submarkets in areas like multifamily, affordable housing, office, retail, student housing and senior housing.

ProxyPics

ProxyPics is a photo delivering service where users can request a photo of a specific location, for other users to complete, for a small fee. Think of it as Uber for photos. The real-estate industry and lending process experience long delays because appraisers, realtors, and inspectors drive countless miles for a real-time photo of a property.

 

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Kelsey Ramírez is an Associate Editor at HousingWire. In this role she spearheads the production of HW Magazine. Ramírez is a journalism graduate of University of Texas at Arlington. She previously covered hard issues such as homelessness and domestic violence.