The Consumer Financial Protection Bureau (“CFPB”) recently published “Consumer complaints throughout the credit life cycle, by demographic characteristics,” an analysis that looks at various demographic and socio-economic characteristics of consumers that submitted complaints during the three-year time period of 2018 to 2020.

The CFPB states that through its analysis, which includes mapping complaints to a credit life cycle (loan origination, servicing of performing loans, delinquent servicing and credit reporting), it is possible to get a broader understanding of consumers’ financial experiences, rather than just looking at individual complaint submissions. The analysis looks at consumer non-public identifying information in relation to 2019 U.S. Census tract data from the American Community Survey. By looking at tract data, the analysis is able to provide community-level information about where consumer complaints are more prevalent and how that relates to demographic characteristics.

One of the key findings from the report is that lower income census tracts, and census tracts with a greater concentration of minority populations, are associated with greater rates of submitting credit reporting complaints and delinquent servicing complaints. In contrast, higher income census tracts were found to submit a greater share of complaints about loan origination and performing servicing than lower income census tracts.

The analysis also notes that since the CFPB was created in 2011, it has received more than 3 million consumer complaints, and that more than a quarter of those complaints were submitted after the beginning of the COVID-19 pandemic. Since March 2020, the largest increase in complaints has been in the category of loan origination, which correlates to an industry-wide increase in the number of refinance loans.

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• CFPB rescinds 7 pandemic-related policy statements (4/7/2021)

DocMagic has launched eSign 3.0, an upgrade to our eSignature platform, with new features designed to help lenders easily facilitate remote online notarization (RON) eClosings.

One of the new features is a secure eClose portal that enables notary and settlement service providers to access and update closing document packages. When the notary or closing agent adds documents, our AutoPrep tool automatically applies the essential e-tag information for electronic execution, eliminating the labor intensive and error-prone process of manually preparing documents.

In addition to new RON and eClosing capabilities, eSign 3.0 dramatically improves signer functionality. With a growing percentage of borrowers using their mobile devices to participate in the mortgage process, eSign 3.0 offers a much more intuitive mobile experience for borrowers.

“We developed eSign 3.0 by making the borrower experience our primary focus,” said Dominic Iannitti, president and CEO of DocMagic. “The workflow takes both the user's physical and emotional experiences into account. We paid close attention to the way users physically handle their phones as well as their emotional responses to technology. The result is a far more satisfying borrower experience.”

Additional eSign 3.0 upgrades include built-in knowledge-based authentication (KBA) and identity validation; a redesigned workflow to give borrowers additional time to read and review documents in a single, centralized view; an accelerated signing phase where intuitive tools track progress at every stage; and full oversight until all documents are executed. The platform’s integrated progress-tracking tools can be used on a computer or mobile device to keep borrowers aware of their progress every step of the way.

“It all starts with a robust API,” Iannitti said. “eSign 3.0 is powered by a comprehensive suite of web services designed specifically for seamless integrations. The end result is that eSign 3.0 makes borrowers feel more connected and informed, so they’re confident about working with their lender and walk away having enjoyed a more positive and memorable engagement.”

eSign 3.0 leverages DocMagic’s suite of eMortgage solutions, including its end-to-end Total eClose™ platform, dynamic document and MISMO Category 1 SMART Doc® eNote generation, automatic eNote registration with MERS®, and secure storage within its certified eVault.

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• DocMagic named to 2021 Inc. 5000 list of fastest-growing companies (8/26/2021)
• 38 states allow remote notarization as RON, RIN and IPEN gain momentum (7/28/2021)
• Number of title agents who conducted eClosings rose in 2020 — but some still resist (4/22/2021)

SimpleNexus is integrating DocMagic’s eVault and eNote technologies with its Nexus Closing eMortgage solution, a move that will allow the company — which offers a homeownership platform that connects loan officers, borrowers, real estate agents and settlement agents — to generate eNotes, deliver them to a secure eVault, and register the eNotes with the MERS eRegistry.

“A fully digital closing, complete with eNote and eVault, is the last hurdle lenders must clear before offering borrowers and investors the myriad benefits of an eMortgage. We’re pleased to now offer these capabilities via our integration with DocMagic,” said SimpleNexus Chief Product Officer Shane Westra. “In a market cluttered with half-baked solutions, we’ve made it our mission to assemble the most comprehensive and singularly exceptional homebuying experience in the business.”

Case Study: Why one lender skipped eSign hybrids and went straight to eNotes 

In addition to DocMagic’s eVault technology, Nexus Closing comes with integrated remote online notarization (RON) and eSigning. It is certified to meet both Fannie Mae and Freddie Mac’s technical requirements for eClosing, eNote and eVault functionality and is compatible with their eNote delivery systems.

eNote registrations have grown dramatically over the past few years, rising from 17,000 in 2018 to more than 460,000 in 2020. eNotes are more secure and accurate than their paper counterparts and can be delivered instantaneously to the secondary market.

DocMagic’s certified eVault gives lenders the ability to access, manage and store eNotes and other electronic mortgage records on a short- or long-term basis. By offering proactive, real-time control of electronic loan files, eVault technology reduces cycle times and improves process efficiencies throughout the mortgage life cycle.

“To stay competitive in this market and future markets, lenders need to adopt eClosing solutions that allow them to generate, sign, store and deliver eNotes as part of a complete eMortgage transaction,” said Dominic Iannitti, DocMagic’s president and CEO. “We’re pleased to offer these capabilities to more lenders through our integration with SimpleNexus.”

Related Content:

• Ask the eClosing Team: Why are eNotes better than paper notes? (and other burning questions) (8/18/2021)
• 3 reasons why your post-closing department loves eClosings and eNotes (6/24/2021)
• Ask the eClosing Team: What do lenders need to get set up for eNotes? (3/4/2021)