By Melanie Feliciano
ESRA Executive Board Member; and
Chief Legal Officer,
DocMagic, Inc.

As longtime members of Electronic Signature and Records Association (ESRA), DocMagic is proud to be a sponsor of this year's eSignRecords2016 Conference. Coming November 2-3 in Washington D.C., this year's signature event will take place at the iconic Ronald Reagan Building and International Trade Center. 

I encourage you to take the opportunity to attend this special event. ESRA's annual conference continues to be a unique platform for organizations across a wide variety of industries to meet and exchange ideas, best practices, and unified strategies in the electronic signature and digital transaction arena.

Take advantage of the chance to learn from some of the foremost innovators of electronic signatures and records.

Event sessions include such topics as:

• The “Democratization Revolution” of data
• Improving your financials with digital records
• Maximizing eSignature ROI
• Bitcoin and the future of money
• Mitigating and eliminating fraud
• The ever-growing digital marketplace for seniors
• Driving eMortgage adoption
• Several case studies on successful transformation from paper to digital

Visit the eSignRecords2016 conference website for the full agenda and speaker information. Last year's event sold out quickly, so register soon to ensure your participation.

I look forward to seeing you in Washington D.C.!

Press Release:

Integration allows consumers to complete the mortgage application and execute disclosure documents from a single online platform, reducing errors and time-to-loan completion

San Francisco, Calif. (June 29, 2016) – Roostify, a provider of automated mortgage transaction technology, today announced the completion of its integration with DocMagic, the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions. Directly from Roostify’s platform via the web or mobile device, consumers are able to securely access, electronically receive, review and sign all initial disclosure documents at the time of application with DocMagic’s proprietary eDelivery and eSignature system.

“The integration streamlines the process of borrower receipt, execution and return of electronically signed initial disclosures, while reducing errors and documenting compliance with a complete electronic audit trail.  This process improves the borrower experience while expediting loan closing,”  said Steve Ribultan, Director of Business Development at DocMagic.  “The ability to provide borrowers with the required initial disclosures at the time of completing an application, as well as allowing them to eSign their documents is a key differentiator lenders are looking for in today’s regulatory environment.  Roostify’s seamless connectivity to DocMagic’s sophisticated, compliance-focused loan document solutions takes their platform to the next level.”  

Within Roostify’s platform, loan officers can now present consumers with real-time disclosure documents and other documentation necessary to close a fully compliant home loan, complete with proof of TRID adherence. 

Consumers can then access and electronically complete the forms within the Roostify platform – the same place from which they submit their mortgage application and collaborate with their real estate agent. Roostify’s platform is accessible from anywhere with an Internet connection, including from a mobile phone.  

“One of the most complex elements of the mortgage completion process is providing customized documents to consumers and retrieving them back in a timely fashion, particularly given the current regulatory environment for lenders,” said Rajesh Bhat, CEO of Roostify. “The integration with DocMagic offers our customers and their customers an easy way to share and sign documents more efficiently, saving time in the process. Consumers gain the convenience of viewing and signing all necessary documents from a single platform, while lenders and loan officers can be sure that they have what they need to remain compliant with evolving industry regulations.”

In 2015, DocMagic celebrated a major company milestone by surpassing more than 100 million eSignature transactions by users. This number has since significantly grown amid increasing adoption of eDelivery and eSigning technology within the mortgage as well as other industries.

Roostify users will be able to access the new DocMagic-enabled features in the company’s upcoming July release. 

About Roostify
Founded by three technologists frustrated with their home buying experiences, Roostify enables a more efficient, transparent mortgage process for lenders, agents and homebuyers. Roostify’s software platform is trusted by prominent banks and mortgage brokers nationwide to deliver more loan volume, faster closes and happier customers. Roostify is backed by private investors, and headquartered in San Francisco. For more information, please visit www.roostify.com.

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.

Press Release:

eQC combines proof of TRID compliance with unsurpassed loan-level data transparency, providing the ‘Holy Grail’ in automated due diligence.

TORRANCE, Calif., May 12, 2016—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced the formal launch of its fully integrated ‘eQC’ solution that automates due diligence for investors and correspondent lenders. eQC provides a complete closed loan MISMO 3.3/UCD XML data file, an automated compliance report, and a detailed audit trail with a document integrity certification that certifies that the XML data provided and documents match prior to investor delivery.

The automated compliance component of eQC includes a complete electronic record of compliance that arms investors and correspondent lenders with a detailed audit trail that eliminates concerns over future TRID audits and violations.   

Moody’s Investor Services, Inc. compiled a report that revealed more than 90 percent of loans reviewed by third party due diligence firms were not TRID compliant. Since that time, outstanding issues with TRID have been adversely affecting the secondary market’s appetite to purchase loans.  Concerns over potential assignee liability can result in loans remaining on warehouse lines for longer periods, extending lock periods, placing loans into suspension, and even potentially affecting the credit rating for mortgage bonds that are included in future RMBS pools.

“The CFPB requires all parties involved in the mortgage finance transaction to demonstrate evidence of TRID compliance,” asserts Tim Anderson, director of eServices at DocMagic. “Our new eQC solution gives investors and correspondent lenders warranted electronic evidence of compliance with TRID and other critical regulations, and ensures that the audited data is exactly the same data that appears on the documents disclosed to the borrower. This is really the holy grail of automated due diligence compliance.”

eQC also provides compliance data on federal regulations like high cost, QM, ATR, as well as applicable state regulations. It works by leveraging DocMagic’s sophisticated audit engine, which determines if a condition is out of compliance. The audit engine immediately flags the causes of any issues for the user, directs the user to a link with information on where and how to fix it, and then verifies that the error was corrected.  A full date and time stamped audit trail is created by following a consistent data validation process that runs over 10,000 compliance rules and edits designed to verify and validate legal compliance throughout the loan origination process.   

This audit trail also provides full date and time stamp tracking of all borrower disclosures, a complete record of the compliance checks and conditions performed on the loan, and the complete MISMO 3.3/UCD XML data file. The XML data file can be used to electronically board and re-verify compliance at any time in the future through a tool set API that enables high speed access to this due diligence functionality.

“With over 8,000 originators running millions of closed loans through DocMagic’s compliance portal each year, eQC leverages the long-standing industry acceptance of our compliance solutions to bring our correspondent lenders and investors true automated proof of compliance,” said Dominic Iannitti, president and CEO of DocMagic.  

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.

Press Release:

TORRANCE, Calif., -- DocMagic, Inc. the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that it was named to National Mortgage Professional magazine's annual "Top 100 Mortgage Employers" list for 2016.

The award is based on the magazine's Mortgage Company Employer Score (MECS), which weighs various factors in order to compile the list. A polling of readers is used with the following criteria: corporate culture; compensation; day-to-day management; internal communications; training resources; long-term strategy; innovation; speed; technology; and industry participation.

"We are honored to be recognized by National Mortgage Professional magazine as one of the Top 100 Mortgage Employers in the country to work for," said Dominic Iannitti, president and CEO of DocMagic, Inc. "Our employees take a great deal of pride in and are very passionate about the innovative products and services we develop and support. DocMagic's ongoing success is predicated on its greatest asset-our highly valued personnel. This award is the result of their hard work and unwavering commitment to our mission."

Employees are offered a number of unique benefits that include catered lunches, regular company outings, an onsite gym and game room dubbed the Rabbit Hole, informal and formal breakout rooms, relaxation lounges, ad hoc staff appreciation awards, recreational events, and more. DocMagic's corporate culture is designed to inspire teamwork, creativity, and synergy.

The company brings personnel together in an open working environment that is conducive to collaboration, intrapreneurship, company building, and out-of-the-box thinking. DocMagic is known for its reputation of treating staff as not just employees but as family; many of them have been with the company since its founding, which speaks volumes.

Notable is that DocMagic's multi-million dollar facility was recently recognized by the American Institute of Architects with a 2013 AIA Institute Honor Award for Interior Architecture. The twenty-five thousand sq. ft., state-of-the-art company headquarters was developed with the comfort of its employees in mind to operate in an optimal, very unique and collaborative work environment.

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 http://www.docmagic.com/.

SmartCLOSE^TM, DocMagic's collaborative TRID compliant closing portal is a winner of the 2016 Progress in Lending Innovations Award! With a goal to recognize true industry innovation, The Progress in Lending Association Executive Team judged every entry in several important categories; Industry Significance, Overall Uniqueness, Positive Change, Intangible ROI and Hard Savings ROI.

While the TRID compliance frenzy swept the industry there were a large number of Collaborative Closing portals launched in a short time period. Like many technology vendors, DocMagic saw the need for a portal that allows lenders, settlement service providers and others to work in sync inside a secure environment to view, share, update and exchange data prior to closing. That’s just the beginning however, as SmartCLOSE’s industry significance lies in the fact that its functionality moves far beyond the simple back and forth of email communications.

The TRID rule created an atmosphere that demanded a more fluid and constant collaboration between lenders and settlement service providers. This is where DocMagic’s SmartCLOSE portal flexes its overall uniqueness in the marketplace. The collaboration inside SmartCLOSE runs continuous and constant compliance checks throughout the process.Not only is the portal intuitive, its technology provides all participants with proof of compliance every step of the way.

This complete and total focus on compliance is part of the built-in design in all of DocMagic’s technology. SmartCLOSE comes equipped with DocMagic’s industry-proven Compliance System and Audit Engine. Running continuous compliance checks and audits assures that issues are caught early while there is still time to correct for compliant documents throughout the process. The result: positive change can be measured in fewer delays and reduced costs.

SmartCLOSE was designed to help lenders and settlement service providers comply with TRID but the portal’s superior functionality makes it so much more. As a collaborative environment where all key parties are participants in the compliant document process, SmartCLOSE ultimately becomes a workflow and document management tool. With constant audit trails of every change, and time and date stamped records securely housed in one central location, SmartCLOSE’s intangible ROI is evident in how easy it is for all parties to deliver compliant closing documents.

“Feature-rich” and “easy to use” are what users say about the SmartCLOSE collaborative portal.  The Hard Savings ROI is easy to see and feel in the workflow between lenders and settlement service providers. Loan Estimate and Closing Disclosures are both handled efficiently and easily by the portal’s workflow, giving lenders and settlement service providers a one-stop shop to prepare and submit compliant documents.

Click here to learn more about SmartCLOSE

 

Presss Release:
Transforms the entire mortgage process from initial eDisclosure to final eClosing and investor eDelivery

TORRANCE, Calif., March 30, 2016 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced today the formal launch of its fully integrated eClosing solution that electronically transforms the entire mortgage process from initial eDisclosure to final eClosing through investor eDelivery. 

DocMagic's total eClosing process seamlessly integrates its eDocument library, SMARTDoc™ eNote with eSignature, eNotary, MERS eRegistration, eDelivery and eVault services in a comprehensive end-to-end eClosing solution that delivers substantially faster closings, total data transparency, superior regulatory compliance and maximum process efficiency. 

The total eClosing solution is also seamlessly integrated into DocMagic's SmartCLOSE™ collaborative closing portal, offering a secure, centralized online environment for lenders, settlement providers and other parties to share, validate, audit, track and collaborate on documents, data and fees backed with a 100% TRID compliance guarantee. The new process is easily accessible from within SaaS-based SmartCLOSE™ and on-premise SmartSAFE XL™ systems, including the eSigning, eDelivery and eVaulting of all documents.

DocMagic's eMortgage solutions have been vetted and approved by Fannie Mae and MERS to support all three eMortgage categories for eVault, eNote and eClosing. DocMagic's participation as a leading player in numerous eClosing pilots, including the CFPB's eClosing Pilot initiative last spring has led to the rapid advancement of eClosing adoption as a solution for regulatory compliance tracking, reducing data errors, data transparency, and bringing borrower knowledge and satisfaction to the loan process. 

"The total eClosing solution is an out-of-the box, easy to implement, fully paperless, patented solution that combines the most advanced functionality and continuous compliance tracking with robust borrower and lender friendly user features," said Dominic Iannitti, president and CEO of DocMagic. "Borrowers can communicate with their lenders and settlement agents and eSign documents while DocMagic runs continuous automated compliance audits throughout the entire loan process, guaranteeing compliance on factors effecting the salability of your loan, from TRID tolerance levels to compliance with anti-predatory lending and higher-priced mortgage loan laws, all while tracking every iteration of the data and speeding up the closing process." 

"The DocMagic total eClosing solution is revolutionizing the traditional paper mortgage process and the timing of this couldn't be better," says Tim Anderson, director of eServices at DocMagic. "With the electronic data verification, delivery and record retention requirements of TRID, lenders have to demonstrate proof of compliance, control and accountability of the entire mortgage process. We have developed only platform in the industry that integrates and supports all key eMortgage functions within a single solution. The total eClosing solution provides a full electronic process in a one stop solution - which is truly revolutionary."

The successful launch of DocMagic's total eClosing solution as well as other recent innovations will be celebrated at the MBA Technology Conference & Expo at the company's 'Futurescape' event on Monday, April 4, 2016, at 6 p.m. at The Conga Room inside LA Live.

Interested parties can learn more about DocMagic's new eClosing solution by calling (800) 204-4255 or emailing sales@docmagic.com. 

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.

Mark your Calendars!

We're celebrating the innovative eFuture of the mortgage industry on April 3 - 6 at MBA's Technology Convention & Expo in Los Angeles, CA! You're invited to attend our Futurescape Event Monday night, April 4th, at the Conga Room inside LA Live!

Join us at booth #302 where we'll be introducing our new eClosing process! We've extended the functionality of SmartCLOSE™ to support a complete eClosing collaboration between lenders and title companies.

DocMagic's eClosing process seamlessly joins our enote, e-signature, e-notary, MERS e-registration, e-delivery, and e-Vault services to deliver an end-to-end eClosing solution.

We're designing the tools and technology to help our customers work smarter... not harder!

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Press Release:
DocMagic puts its money where its mouth is with the most far-reaching compliance guarantee of its kind in the mortgage industry

TORRANCE, Calif., Feb. 16, 2016 -- DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, today announced the development of an extensive set of new reps and warrants for its calculations, documents and data, which provides peace of mind to lenders when it comes to compliance with the TRID rule.

The greater risk of civil liability under the new TRID disclosure requirements means lenders and investors may face liability for incorrectly completing various sections on the TRID disclosures. With DocMagic's TRID-ready systems and now the Premium Compliance Guarantee, DocMagic has implemented a solution that mitigates lender risk of non-compliance. With the Premium Compliance Guarantee, the Loan Estimate and Closing Disclosure are guaranteed to be accurate and complete.

Additionally, the Premium Compliance Guarantee ensures timely electronic delivery of initial disclosures, compliance with federal and state high cost/HPML laws and accurate document selection logic resulting in compliant loan packages. The Guarantee also ensures that all other compliance and data validation audits will trigger at the appropriate times during the loan process, providing critical warning messages to help lenders stay in compliance with applicable laws.

The offering is backed by a $5 million dollar guarantee (up to $50,000 per loan) and DocMagic customers will enjoy a 36-month claim filing period. Beginning February 15, 2016, all new DocMagic customers will automatically receive the new premium rep and warrant offering. Existing DocMagic customers will be given the opportunity to protect their future loan files for an additional nominal fee.

"Now more than ever, our clients need assurance that they are operating in full compliance at all times," said Dominic Iannitti, president and CEO of DocMagic, Inc. "That is why we invested in developing and integrating the Premium Compliance Guarantee into DocMagic's suite of products, including the TRID-based SmartCLOSE™ collaborative closing portal, for every user on every transaction."

Rich Horn, the former CFPB attorney who led the TRID rule making stated, "Long before the initial Aug. 1 TRID effective date, DocMagic's industry-leading compliance, legal and technology teams proved that their systems were fully TRID compliant. This enabled DocMagic to provide an insurance-backed guarantee on their products and services, including TRID disclosures prepared using SmartCLOSE™, which speaks volumes about the confidence they have in their solutions."

"With the integration of the Premium Compliance Guarantee into DocMagic's suite of services, significant lender risk is virtually eliminated," asserted Melanie Feliciano, chief legal officer at DocMagic. "DocMagic has developed the most advanced and effective compliance solution in the industry - and we've backed it with a solid guarantee we are proud to offer our clients."

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 http://www.docmagic.com/.

Dominic Iannitti, president and CEO of DocMagic, talked candidly about what the mortgage industry needs to do to improve the lending process.

With the TRID deadline behind us, the industry is breathing easy again. But should it? Recently ComplianceEase, a provider of automated compliance solutions to the financial services industry, released an analysis of compliance defects for closed loans and estimated that the cost of correcting these errors is increasing the cost of origination, on average, by approximately $28 for every loan. The analysis was based on a cross-section of 700,000 audits that were performed in ComplianceAnalyzer and RESPA Auditor during the first quarter of 2015. It found that 17 percent of the loans failed for Truth in Lending Act (TILA) reasons. Another 6 percent of the loans—or one in 15—failed for being outside of the Real Estate Settlement Procedures Act (RESPA) tolerances.

So, this industry clearly is struggling with compliance. The answer to ironclad compliance is migrating to a truly data-driven process according to Dominic Iannitti, president and CEO of DocMagic. DocMagic is a 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. Here’s what Iannitti thinks the industry should do to forever revolutionize lending:

Q: How did you get started in the mortgage industry?

DOMINIC IANNITTI: I was originally very interested in data and putting data together, re-packaging data, and being able to sell data in a different format. I read a story that focused on the manipulation and modification of data. I thought that it was wild to be able to take data, and change it, and format it, and turn that into a marketable service. I immediately got interested in this idea, started to look at technology, and created a business plan for a document production company for the mortgage industry. That’s where it all started. We began to migrate and leverage that data to actually select appropriate forms, to apply rules around that process, and make forms very intelligent. Later we added the ability to electronically deliver those forms. In the end, it’s because of that interest in the raw data that brought me really into the mortgage finance area.

Q: Over the time that you’ve been in the industry, how do you think mortgage lending has changed?

DOMINIC IANNITTI: It’s changed a lot. When we first got involved in mortgage lending, we were delivering documents. We would produce those documents and then literally take the packages out to the car and drive them to the client. We were limited in our reach from a customer perspective. Then modems were created and we had a way to actually send the ones and zeros on the form remotely to another office from another location, which was amazing. Then the laser printer was created and that radically changed documentation. The rules engine behind the document became more powerful. We created our own rules engine within the DocMagic product, which enabled us to be very dynamic in selecting forms and making sure the correct forms were there. Ultimately we were leveraging this technology to pick the client’s rules, validate them, make calculations, ensure regulatory compliance, etc. The industry has changed a lot.

Q: What about Doc Magic as a company? How has it evolved since you started it twenty some years ago?

DOMINIC IANNITTI: When we started DocMagic was very focused on documents. It’s still focused on documents, but it’s become much more of a compliance company, much more of a technology company. So, we were very production oriented in the beginning. You would take in information, and create a document, and manually deliver everything. It was all about documents and creating those documents. Today we have evolved into a compliance company that delivers everything electronically. You could also make the argument that we’ve become a software development company, as well. We’ve had to become very quick at creating solutions, and that means having a large development staff. When we think of an idea we have to create a prototype and ultimately bring a product to market. The company is dramatically different as compared to what it was when we first started off. Now we have one particular department focuses on document production, which is all the original company used to do.

Q: Over the past year, you’ve made two acquisitions, eSignSystems and Document Express. How did they come about? How are things going with them now? Where do you see them going in the future?

DOMINIC IANNITTI: DocMagic has become a very large company. We are serving in excess of 7,000 lending institutions at this point. When requests come in, there’s sophisticating systems and metrics and sophisticated technology to make sure that we’re doing what we promised our clients we would do, service their needs as quickly as possible. We’re always looking for ways to improve that efficiency. Real-time data is coming back from our clients about how we performed. It’s not unlikely that we’ll get somewhere in the neighborhood of 8 to 10,000 requests each week. It’s an insane amount of requests that come into the system. So, when we looked at Document Express, it was a small, boutique company, much the same way we were when we first started out. What we liked about that was the fact that they had a good group of clients and they were very boutique oriented in the way that they were handling those clients. It was very hands on. It was very mundane. It was exactly the opposite of what the company had evolved into. Not to say either one is better or worse, but to say we were interested in that acquisition because it reminded us of what we were when we first started. We looked at that acquisition as a way of bringing that mentality back. When we brought them on, every client that they had stayed with the company. We’ve not lost a single client. The group of people that run that organization are phenomenal and they’ve done an incredible job. We extended our toolset to them, as well. Their systems now integrate to all of the DocMagic clients, the DocMagic calculations, and the DocMagic evolving and electronic delivery technologies.

The eSignSystems relationship is a little bit different. There was a different motivation for that acquisition. DocMagic focuses on the mortgage industry and we learned during the time that we were trying to transition the industry to start to think about DocMagic as a compliance company, which we felt was critical, that was an uphill battle. When people think of you as a document production company, it’s difficult to change that mindset. We have been on the cutting edge of electronic delivery, and electronic signature technology here at Doc Magic. All of that is integrated into the Doc Magic products. Our clients don’t have to go out and look for an electronic delivery service because those services are tightly woven into the very fabric of our product because we have that expertise. We realized that in order for the mortgage marketplace, and other industries as well, to consider adopting an electronic signature strategy, it would be necessary for us to bring on another company that has that expertise as a strategic advantage. eSignSystems had great technology. Most of their technology was designed to be on premise. It was designed for much, much bigger organizations. So, we felt that the marriage of the two companies would be great. We would bring our SaaS offering together with the on-premise offering at eSignSystems. Now very large organizations could come to us and we would have the right solution for them. We’ve been doing a lot of work retooling their technology, as well. eSignSystems also gives us the ability to reach beyond the mortgage industry, and expand to serve other industries. For example, now we have a number of insurance clients and we’re hoping to bring on some automotive dealerships. That’s been very exciting.

Q: Are you still in an acquisition mode? Are you actively looking for other acquisitions? Or do you think that those acquisitions were just opportunistic that came up at the time? How would you describe your M&A strategy?

DOMINIC IANNITTI: We’re always actively looking. There are certain companies that we are always watching. We’re also opportunistic at the same time. If the situation presents itself and we feel that we can it work, we are open to acquisitions. Our eyes are always open and we’re absolutely keeping a very close watch on a number of different types of companies that we’re very interested in.

Q: You recently launched a product called SmartCLOSE. Describe the evolution of the product. What’s the value proposition behind the product and where you see it going in the future?

DOMINIC IANNITTI: We realized very early on that collaboration is going to be key to making the mortgage system work. Lenders, settlement agents, and other have to collaborate and the changes to the loan that happen as a result of that collaboration need to happen in real time. If I’m in the system and I make a change, but you don’t see it for five minutes, that’s not collaboration. We researched and came up with a new technology stack that would enable us to provide real-time collaboration, much the same way that Google Docs works. We wanted to allow for real-time updates. If I’m in the system, the settlement agency sees exactly what I’m doing. It is truly dynamic. If I make a change and I need to make sure you know about that change, SmartCLOSE will notify you. So, the communication within the system is very sophisticated. If you’re in the system you will see the update in real time and if you are not in the system you will be notified of the update in real time.

In addition, the system handles data. It handles an immense amount of data. That data moves and hits the disclosure forms, for example. So, the forms are created and updated dynamically. The system also maintains a record of all the changes. I can go into, for example, the origination fee and I can see in that fee all the communication, conversations, and messages that went on about that fee. You know who made every change and why they made that change. We had no idea when we started the project how important communication was. At every step the system is creating a record and audit log.

The most exciting part about SmartCLOSE is the fact that it establishes the relationship between the lender and the settlement agency. That just never existed before. Again, it’s so simplistic, but it comes down to communication. Really, if you play in this arena, you faxes and e-mails and all kinds of things going back and forth, but there’s nothing that brings it all together. There’s nothing that unites all of those communications. SmartCLOSE does that.

Q: DocMagic surpassed 100 million e-signed transactions this year. How did you do that?

DOMINIC IANNITTI: What’s really exciting is that we can create these disclosures perfectly with e-signatures. We feel like we are uniquely situated to move the industry forward when it comes to the usage of electronic signatures. We are so proud of our e-signature number. We have even opened up this service to other industries. You can bring your own docs into our system and apply an electronic signature even if you are not in mortgage. We also have strategic alliances with other companies where they will leverage our electronic signatures for appraisals, for example. There has been an outpouring of interest in electronic signing.

Q: What’s the future of doc prep as an industry category within mortgage lending?

DOMINIC IANNITTI: Doc prep has become much more dynamic. For example, closing disclosures get messy really fast if you’re just using templates. The reality is that you have to create a document dynamically for closings to work these days. Very early on DocMagic realized that there has to be a lot of intelligence embedded in the form itself. For example, our documents can audit themselves. So, if a calculation is wrong it will throw that alert back into the main system to show that something may be out of compliance. In that case, the doc is actually performing a regulatory audit on itself. Increased intelligence within mortgage documentation is something that you are going to see more and more of.

INSIDER PROFILE

Dominic Iannitti is President and CEO of DocMagic, Inc., the mortgage industry’s preeminent provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions. Since founding the company in 1988, Iannitti has been responsible for the company’s wildly successful track record as a leader in closing loan document production software and eServices solutions. DocMagic’s innovative technology and company growth is the result of his leadership and vision. Most recently, Iannitti spearheaded the development of SmartCLOSE™, the leading Collaborative Closing Portal for TRID compliance.

INDUSTRY PREDICTIONS

Dominic Iannitti thinks:

1) Most collaboration closing portals for TRID will fail, with only a handful being viable long-term solutions.

2) Current TRID requirements and the CFPB’s commitment to eClosings will drive lenders to implement a true eClosing process — sooner rather than later.

3) Because of QM, ATR and now the TRID MISMO 3.3 data requirement, many investors will push their post closing QC process to a more automated pre-closing QC process that ensures better data and document integrity, compliance and control.

As featured by Progress In Lending, December 2015

After lenders and their technology providers spent much of 2015 implementing the TILA-RESPA integrated disclosures, forthcoming compliance audits and a government-sponsored enterpriseplan to start collecting data from the new forms will tell if those efforts truly paid off.

Lenders are also looking ahead at other technology initiatives to bolster their competitive advantage at a time when more purchase originations are expected to take a larger share of overall mortgage lending.

"TRID was like the story of the century because it had such an impact on technology, process and regulatory compliance. The story in 2016 will be auditing that compliance," said Tim Anderson, director of eServices at Torrance, Calif.-based document technology provider DocMagic.

"There have been some issues with how the fees are being calculated to estimate the borrower's cash to close. I think people are not applying the fees to the right buckets yet," he continued. "We won't know what is going to be truly accurate until the Consumer Financial Protection Bureau starts auditing and writing up these fines."

While all new mortgage originations must follow the new disclosure rules, the initial transition period has created another point of TRID consternation. Lenders are still working through loans that were started prior to the regulation's Oct. 3 implementation date and use the old Good Faith Estimate and HUD-1 disclosure forms.

"The problem with the way the TRID rollout happened is that there are still two different paths for a loan. Stuff from August that's new construction or a to-be-determined property, all of those are still GFE loans," said Jeff Verry, vice president of technology relations and a senior mortgage banker at Atlantic Bay Mortgage Group in Virginia Beach, Va.

"What we're working on right now is coming up with a date and trying to pick when we're going to swap over and say, 'now everything's a TRID loan.' Then I think TRID will be the new normal at that point."

Building off the industry efforts to implement TRID, Fannie Mae and Freddie Mac plan to start collecting data from the new Closing Disclosure as early as the fourth quarter of 2016. The GSEs plan to make submission of the data mandatory on all loans sold to the enterprises by the second quarter of 2017.

To do this, Fannie and Freddie have developed the Uniform Closing Dataset, a digital file format that enables the individual data points on the Closing Disclosure to be stored in a database and analyzed.

The initiative falls under the auspices of the GSEs' joint Uniform Mortgage Data Program and follows recent technology projects Fannie and Freddie have individually undertaken to verify the accuracy of underwriting data before loans close. Freddie made its automated underwriting system free to use in May 2015, with Fannie following suit a few weeks later. In addition, both companies have introduced their own suites of automated loan review software.

"They're not going to look at that paper file anymore. They're going to audit the data and that's where we'll find the errors because they'll be able to check the calculations," said Anderson.

While managing compliance requirements is a never-ending endeavor, lenders and vendors now have some breathing room to resume projects that have sat on the backburner while they implemented TRID.

"Everybody had to put stuff on hold to be able to figure out what they were going to do when TRID went into effect," said Verry. "Now, we get to focus on the things we want to do, versus the things that we had to do because of TRID."

If industry projections hold true for an overall decline in mortgage originations and purchase loans accounting for a larger share of total volume in 2016, lenders will face increased pressure to compete for business and ensure seamless and timely loan closings — areas where technology can help lenders improve their processes.

"We're going to focus on CRM," said Verry, echoing an interest in customer-relationship management software that lenders also shared in a recent National Mortgage Newssurvey.

Atlantic Bay Mortgage Group is in the process of implementing new CRM software as part of an overall strategy to make its use of technology a competitive differentiator.

"Our industry as a whole has been average, at best, when it comes to technology. Now, we are taking a step to leap forward and become more of a technology leader and innovator," said Verry. "It's not something that everyone is working on, but I think it's the thing that smart companies are focusing on."

An offshoot of the increased emphasis that regulators and the GSEs have put on prioritizing the underlying data of a loan over static documents is that the use of paperless processing is shifting from a low-priority frill to a mission-critical business imperative for lenders. At the same time, rising consumer demands for a more technology-enabled experience should further encourage lenders to upgrade their processes.

"It's in both lenders' and regulators' interest to have the transaction be electronic," said Margo Tank, a partner at the Washington, D.C., law firm BuckleySandler who specializes in electronic transactions. "It provides ease and cost efficiency for the customer, more accurate data for lenders and an ability to look into the transaction and see what actually happened from the regulatory side."

Case in point: the CFPB's electronic closing pilot program. The four-month study in early 2015 found borrowers who participated in an electronic closing completed transactions faster and reported feeling better informed about the process.

Still, widespread adoption of paperless processing and electronic signatures won't come as the result of any one compliance requirement or new technology.

"I don't think one set of disclosures can tip it over, but it is part of an evolutionary process," said Tank. "It demonstrates that this is a better way to do business, combined with regulator demand for transparency and better compliance. All of those things coming together are going to move the paperless spectrum a little bit further down the road."

By Austin Kilgore, As featured by National Mortgage News, December 2015