Gains competitive advantage, speeds funding process, results in fewer exceptions

Anaheim, Calif., Oct. 29, 2018—Annual CUNA Lending Council Conference - DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced that QRL Financial Services (QRL), a nationwide provider of residential mortgage lending services for community banks and credit unions, has leveraged its eVault technology to purchase eNotes. The announcement was made during the 24th Annual CUNA Lending Council Conference at the Disneyland Hotel in Anaheim, Calif.

Implementing an eVault means QRL can increase new business by extending its reach to lenders that are ready to implement eClosings and sell eNotes. In addition to providing improved service, they will competitively position themselves for the future. The deal will make QRL one of the first investors outside of the GSEs to begin purchasing eNotes.

“QRL is a farsighted organization, and by implementing eVault technology now, they stand to capitalize on marketplace opportunities as eNotes continue to gain adoption,” stated Dominic Iannitti, president and CEO of DocMagic. “We tend to partner with early adopters like QRL, who will reap the benefits of their industry insight. We look forward to the success they realize by utilizing our eVault and supporting technology.”

Because QRL is using DocMagic’s SmartDocs, all documents retain a tamper evident seal to ensure data and document integrity. Using static documents, that don’t include SmartDoc transactional (XML) metadata, means some organizations have the difficult, costly and time-consuming task of confirming that data and documents are in sync.

“Offering a truly paperless solution is the future. Consumers will expect and demand a closing experience that is more timely, convenient and informative," says Alex Rivera, managing director at QRL Financial Services. "QRL’s ability to purchase and service eNotes will allow the credit unions and community banks that we service to stay ahead of the technology curve as they compete with the larger institutions in the race to improve the mortgage experience.”

The solution will also create greater secondary market process efficiencies because of reduced cycle times. QRL will be able to fund faster with fewer post-closing document issues.

Contact Michael Chaney, michael@docmagic.com to schedule a meeting. 

Technology to validate data, assure quality and compliance for all pre-funded home loans

TORRANCE, Calif., Sept. 18, 2018—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, announced today that Freddie Mac has implemented its SaaS-based eVault technology and SmartREGISTRY™ platform.

DocMagic’s eVault provides a secure electronic repository for storing documents and performing automated eNote certification to Freddie Mac eMortgage lenders via Loan Selling Advisor®. By automating the eNote certification process, Freddie Mac will speed the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs.

“Freddie Mac is committed to streamlining the mortgage process for lenders and borrowers, and has been a leader in purchasing eMortgages since 2006,” said Andy Higgenbotham, Freddie Mac’s Single Family Chief Operating Office. “We rolled out our automated certification process in 2015 to speed up the funding process, thereby improving liquidity in the mortgage markets and reducing lender’s warehouse line costs. We are now expanding this process to include the DocMagic platform.”

DocMagic’s eVault provides safe and secure storage for sensitive loan documents. It also automatically parses and validates data in a SmartDoc eNote against data in the user’s core system of record. Additionally, DocMagic’s SmartREGISTRY platform enables holders of eNotes to securely transfer these electronic documents to other eVault systems, such as those used by investors, conduit aggregators and servicers. Ultimately, it facilitates real-time access, delivery, storage and much needed control of electronic loan files.

“Freddie Mac has been a long-time visionary and champion of eMortgages over the years and has made great strides with their unwavering commitment to automation across the supply chain,” stated Dominic Iannitti, president and CEO at DocMagic. “Now, with the successful rollout of SmartDoc eNote data validation prior to funding, this demonstrates the advantages and a clear-cut ROI of going completely ‘e.’ We look forward to ongoing collaboration with Freddie Mac and to further adoption of the digital mortgage process.”

Notable is that that Freddie Mac encourages the use of ‘SMART’ (securable, manageable, archivable, retrievable, transferable) eNotes because static documents do not contain source data, and thus make it difficult, costly and time consuming to confirm the data on documents match.

DocMagic established a process that guides lenders on how to begin using SmartDoc eNotes. The company’s eVault technology is integrated with its Total eClose™ platform, which is a comprehensive eClosing solution that creates a 100 percent paperless digital mortgage process — from origination through eClosing, eWarehouse lending, investor eDelivery and eServicing.

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.

Heading to Las Vegas for the Digital Mortgage Conference?

Whatever your unique business model, we can help you prepare for your next generation of buyers! Our suite of technology solutions advances the mortgage process at every stage, improving the experience for lenders and settlement service providers with:

• An extensive eDocument Library plus eSignature technology
• MISMO category one compliant SMARTDoc® eNotes
• eNotary Technology for all 50 states
• Direct connectivity with MERS® eRegistry
• An irrefutable Audit Trail for proof of compliance
• A secure, certified eVault
• An Investor eDelivery channel

We'll be at kiosk #318, ready to support your eMortgage process. Book some time directly to your calendar!

A leading national subservicer opens up market opportunities by servicing eNotes stored electronically via DocMagic's eVault Technology.

VIRGINIA BEACH, Va. – October 20, 2017 – LoanCare, a ServiceLink company, announced today that it has begun utilizing DocMagic, a provider of fully-compliant loan document preparation, regulatory compliance and comprehensive eMortgage services, in order to add eVaulting capabilities to its process. This allows LoanCare to begin servicing loans registered with MERS® as eNotes.

LoanCare is a subservicer operating in all 50 states, servicing more than 1 million loans. Clients of LoanCare can now begin servicing loans stored electronically as eNotes, using an eVault that is secure, compliant and scalable while providing process transparency.

“By utilizing DocMagic, we have established a competitive advantage and created the opportunity to store and subservice loans housed in an eVault, making us the premier subservicer for electronically closed loans,” said Gene Ross, executive vice president of strategy and business development at LoanCare. “After performing a careful evaluation of vault providers in the marketplace, it became clear that DocMagic was the software company that could enable us to broaden our services for our clients.”

DocMagic has an existing integration with the MERS® eRegistry system that registers originated or purchased loans as eNotes. After MERS® registration, the eNote is securely transferred to DocMagic’s eVault, and then can easily and efficiently be serviced by LoanCare. Loan details that are stored in DocMagic’s eVault can be referenced and reported on, so that in the event of an audit, LoanCare can provide proof of compliance for its clients such as TRID and other rules and regulations.

For all eNotes that LoanCare services, DocMagic retains a complete electronic audit trail, tracking every event and securely storing both data and documents for the life of the loan.

“As states continue to adopt more convenient notarization for consumers to enable digital signing of mortgage documents, we anticipate greater market acceptance that will drive the ease in which loans are originated,” said Dave Worrall, president of LoanCare. “One example was North Carolina’s recent achievement of its first ever eClosing – our servicing of that electronic mortgage loan utilized DocMagic’s technology. By providing eVault services to our clients and the marketplace, we plan to continue to be a leader of technology and process innovation.”

“With eClosings starting to gain adoption among lenders, LoanCare’s use of our eVault opens up a substantial opportunity for them to capture market share while operating efficiently, cost effectively and compliantly,” said Dominic Iannitti, president and CEO of DocMagic. “Our Total eClose™ single platform solution enables lenders to close loans without any paper involved whatsoever. The industry adoption of eClosings that we are seeing is significant. LoanCare is a visionary organization that has prepared itself to start servicing eNotes by harnessing the right technology ahead of the curve.”

DocMagic's eMortgage solutions have been thoroughly vetted and approved by Fannie Mae, Freddie Mac and MERS® to compliantly support all three eMortgage categories for eVault, eNote and eClosing. In addition to its SaaS-based eVault, DocMagic also offers an on-premise eVault solution that is available through eSignSystems, a DocMagic owned and operated company.

By Tim Anderson

The days of no pressure are over. Any lender that hasn’t already waded into the ePool had better be ready to jump. With immense regulatory pressure looming, the old method of just doing something is no longer sufficient. It's time for a new tack.

The recent news about the IRS decision is an ex- ample of this. With all the buzz around this news, we’re already hearing from lenders who are interested in a point solution that will allow them to take advantage of this decision for doing business with the IRS. This makes sense because this is front and center in the news, but since these lenders are not considering how this decision impacts the rest of their business, it’s short sighted.

The 4506-T is just one document and while it makes good sense to make the ordering, accepting, processing, filing and storing that document all electronic, what about all the other documents? The e-signature part of this solution can and should be applied elsewhere in the enterprise. When it is extended, it should be done the same way. If it’s good enough for the goose, it’s good for the gander as well.

Seeking a paperless map. Electronic signatures are more than a digital picture of a signature; they are a process, a ceremony. E-sign is a legal process that includes proof that the borrower actually viewed every document, whether there’s a signature or not. Auditors will demand to know if the borrower actually viewed every document. There are also requirements around whether the signature is embedded or an overlay. There are other requirements around how the lender provides the tamper- evident seal. Investors have a lot to say about what is actually involved.

Providing a common and consistent eSigning experience. These processes can vary by vendor, but using different types of e-sign technology across an enterprise can cause problems with investors, to say nothing of confusing borrowers and degrading the consumer’s experience. Remember, from the consumer’s perspective, there are many other documents they would like to sign electronically. If the lender hopes to get consumer adoption, the same tools should be used across the entire process and borrowers should not be asked to sign some documents electronically and others traditionally.

Lenders no longer have the luxury of gently moving into the paperless world. They need to get in soon and they need to take their entire lending process with them. That means that institutions will be seeking solutions that will get all of the paper out. Lacking that, they will seek out partial solutions that already carry within them the map for the future steps that will get them fully electronic.

The very best way to ensure that is to work with a vendor who can take you down that road as fast and as far as you want to go, but in no case slower than the government requires. Choosing a vendor that can only provide a point or piecemeal solution, without a plan for getting to the next step, will put the institution at risk.

An “e”nterprise solution, from application, to closing, to servicing. A good RFP will go a long way toward separating those players who cannot provide a complete solution from those that can. It will also reveal which vendors understand the nuances—from application all the way to closing and loss mitigation—that could impact the lender’s ability to comply with investor and regulatory guidelines. Moving into electronic lending is no longer a simple, cheap or fast implementation. Like everything else in this business, it requires careful consideration.

This is part one of a two-part article on the industry-wide transition out of paper-based processes to electronic, from application through to closing and servicing. Tim Anderson is the Director of eServices at DocMagic.

Posted with permission from The Mortgage Executive Magazine.

By Tim Anderson

For years a core group of us has been telling the industry that it’s time to get the paper out of our systems. We’ve performed studies that show paper is more expensive, that it takes more time to process, is usually missing pages or signatures, or gets lost. It took the foreclosure crisis to really bring home to the industry the negative implications of lost or incomplete documents. After billions of dollars in settlements to federal regulators and attorneys, it looks like our industry is finally ready to say goodbye to paper forever, or at least a majority of it.

Anyone who has yet to be convinced will get all the persuasion they need when the Consumer Financial Protection Bureau implements the Three Business Day Rule for mortgage loan closings. When lenders and their closing agents are forced to deliver a correct settlement statement to the borrower three days before closing, they’ll learn just how difficult it will be to get everything right and on time in a paper world. Taking their businesses fully electronic will be the only way to ensure compliance.
The good news is that the vast majority of lenders are already moving in that direction. In January, the industry got a boost when the IRS announced that it would finally be accepting electronically signed documents for the ordering of 4506-T tax transcript orders. The FHA, one of the very few remaining federal government holdouts, is expected to follow suit later this year.

The worry now is how lenders will go about making that important transition. Pushing the point solution. For much of the past decade or so, electronic lending advocates like myself have been urging lenders to quit worrying about their entire enterprise and just pick a process and take it electronic. By taking out the paper in a piecemeal fashion, lenders would at least be moving in the right direction and selling themselves on the benefits of paperless lending in the process. This tactic worked for a number of reasons.

First, it was inexpensive. When it comes to technology systems, it always costs less, in the short run, to isolate your systems and concentrate on a single process. This kind of razor sharp focus lets technologists create workable solutions more quickly. But if we’ve learned anything from the foreclosure process, it’s that there are no truly unconnected systems in our business (or at least there shouldn’t be). Ultimately, the lower price tag enticed more lenders to dip their toes into the paperless world and this was good news.

Second, when the project is kept tight and focused, it doesn't take long to configure and test a solution. This meant technologists could finalize their work faster on isolated processes and deliver successful pilots to lenders more quickly. In the end, a successful test is the only way to convince an executive to move more deeply into a solution.

The biggest reason that partial solutions were beneficial in the early days is that by getting lenders to experience their business without paper, the benefits that researchers promised proved to be real. It became clear to the industry that it really did make sense to do everything electronically.

This prompted more lenders to take another step into the digital world, and another one after that. Because the industry was under no real pressure to make this shift work, many lenders made a gentle transition toward fully electronic systems and are enjoying the benefits today.

This is part one of a two-part article on the industry-wide transition out of paper-based processes to electronic, from application through to closing and servicing. Tim Anderson is the Director of eServices at DocMagic.

Posted with permission from The Mortgage Executive Magazine.

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Press Release:

Fully TRID-compliant solution delivers superior service and a competitive advantage

TORRANCE, Calif., Sept. 29, 2016—DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced that Corporate Settlement Solutions (CSS), a title and settlement services company, has successfully implemented DocMagic’s Total eClose™ solution.As a result, CSS can offer a completely new customer experience, gain a competitive advantage, and remain 100 percent TRID compliant at all times.

“We recognized early on that in order to differentiate ourselves from a crowded marketplace, it was paramount to offer elevated service to our clients,” said Jerome Jelinek, CEO and general counsel at CSS. “With the addition of DocMagic’s Total eClose, we offer lenders the opportunity to transform their mortgage origination process through the elimination of paper, thereby significantly reducing costs and increasing efficiencies.”

CSS combined DocMagic’s functionality, services and integrations into a single offering to create an easy-to-use, out-of-the-box eClosing solution. DocMagic’s Total eClose functionality unites eNote, eSignature, eNotary, MERS eRegistration, eDelivery, and eVault services to provide a highly-efficient, paperless end-to-end eClosing. In addition, documents that need to be notarized can be conveniently eSigned and eNotarized without leaving the comfort of their home.

“We are excited that CSS is successfully leveraging our Total eClose solution to provide a completely electronic closing process for their customers,” said Dominic Iannitti, president and CEO of DocMagic. “As a settlement service provider, it is impressive that CSS has taken a leading role in promoting the benefits of eClosings and as an early adopter, they will enjoy a significant advantage over their competitors.”

After the introduction of TRID and its increased liability for lenders and their assignees, if you originate, sell, buy or service loans, you must be able to demonstrate TRID compliance years after a loan closes. DocMagic’s system provides electronic proof and evidence of compliant transactions for future audits with a date and time stamp audit trail of everyone who has touched the transaction at any level. From the original loan application and Loan Estimate (LE) to receipt of delivery of the final Closing Disclosure (CD), data, calcs and documents are stored in an eVault to provide the ability to replicate proof of compliance.

With TRID’s increased compliance requirements and soon the implementation of the new Uniform Closing Dataset (UCD) requirement, the future is in fully-electronic transactions that help lenders meet strict timing requirements and provide the ability to fully recreate all compliance checks at every point in the transaction. The CFPB and industry experts agree that it’s better to adopt and implement the technology and processes to make eClosings a reality now as opposed to later.

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 CSS
Corporate Settlement Solutions (CSS) is a dynamic, forward-thinking group of real estate settlement service professionals with a focused passion for providing a superior customer experience. The company started as a local title agency in northwest Michigan in 1992. CSS’ growth fostered expansion into a regional vendor management company offering a full range of title, closing, valuation, flood, and recording products. The company offers powerful title software for accurate and efficient
title and settlement transactions as well as an and-to-end eClosing solution. For more information, go to www.visitcss.com.

New CFPB compliance requirements mandate that it's time for 'e.'

By Tim Anderson

Back in 2002, when Fannie Mae said it would begin buying this thing called a MISMO category one SMART-Doc e-note, some in the industry thought, “If Fannie Mae is mandating it, the world will quickly embrace it.” 

Boy, were those people wrong. 

Fast forward to today, and so far, there have been more than 339,456 e-notes registered on MERS. Fifteen years after the Uniform Electronic Transactions Act and E-SIGN Act passed, which created legal acceptance that an e-signed electronic document is as legal as a wet-ink-signed paper one, it appears that adoption is finally going to happen. 

Think, for a moment, about some of the headlines that have recently hit the mortgage press: “Goldman Sachs Resolves U.S. Mortgage Probe for $5.1 Billion”; “Wells Fargo Admits Deception in $1.2 Billion Mortgage Accord”; and “UBS Blamed in U.S. Trial for $2.1 Billion in Mortgage Bond Losses.” At last count, the penalties and fines in the mortgage meltdown aftermath are an estimated $110 billion and counting. Some servicers are continuing to pay because they have not fundamentally changed their processes - and now, they are going after the rating agencies, too. 

If you saw the movie “The Big Short,” you know it’s about how a few smart guys who, with a bit of luck, accurately predicted the mortgage meltdown and shorted key companies’ stocks that were financing it when it hit. It made them millionaires. Thousands of others were oblivious, and when the music stopped, many were caught holding the bag, or in the case of the mortgage meltdown, bad loans that had flooded the market. 

Now, with the advent of the Dodd- Frank Act and the Consumer Financial Protection Bureau (CFPB), new regs are in place to hopefully prevent this scenario from ever occurring again. Meanwhile, the industry is facing a huge problem in that it is failing to fully embrace technology and automation and is still clinging to manual, paper-based processes.

Ostrich head in the sand response 

One would have thought that with the National Mortgage Servicing Settlement’s requiring the largest servicers to pony up more than $25 million in assistance money and an estimated $110 billion-plus in additional fines and fees paid out since then, it would have facilitated the rush to automate and eliminate the paper cost and risk of robo-signing documents - but it didn’t. Instead, most still took the traditional approach of throwing more people and paper at the problem in hopes that it would eventually go away. But the CFPB’s new “Know Before You Owe” rule - also known as the TILA-RESPA Integrated Disclosures (TRID) rule - dictating new delivery requirements and tracking of consumer disclosures, is finally driving the industry to automate and adopt “e.” 

A new age of compliance 

It’s no longer just about generating “dumb” docs and placing them in a paper file to document compliance. The new regs dictate changes in workflow and relationships and being able to verify that a lender did what it said it did - all along the mortgage manufacturing process. The other requirement of generating a MISMO 3.3 data file - and soon, the Uniform Closing Dataset, so any company can electronically board and verify compliance of the data - is another key change and requirement driving a total paperless process. 

Forms are not data 

Most look at documents as an event in time rather than a process over time. As “Know Before You Owe” became effective, almost everyone in the industry myopically focused on the closing disclosure, as it needed to be delivered three days prior to the closing. Much like the issue with the government-sponsored enterprises’ (GSEs) singular focus on the e-note as the only document that needed to be executed in an e- closing, it’s easy to overlook that there are more documents in the closing package than these two forms. Soon (much like RESPA 2010 with the TILA calculations), everyone was building some sort of closing collaboration tool to integrate the lender’s loan origination system (LOS) to the title system in order to get the fees right. They soon discovered that the reg really started at the time of application with the initial loan estimate form. So, the portals were expanded to handle this, but still, most do not automatically check for compliance, nor do they “rep and warrant” the calculations or documents. 

Fannie and Freddie are leading the way 

With the Uniform Mortgage Data Programs (UMDPs), and now, with the new quality control systems, Fan- nie and Freddie recently announced that they are moving their traditional post-closing, pre-funding reviews to a pre-closing review in which the work- flow is greatly enhanced to fix the problem before a close rather than attempting to go back upstream to fix it once a loan has closed. 

And with Richard Cordray, direc- tor of the CFPB, declaring that the e-closing is his No. 1 signature initiative, it’s easy to assume that this will push the trend further. The requirement of proving receipt of deliv- ery of the three-day delivery rule alone should be reason enough to go “e.” 

Processing at the speed of light 

Quicken Loans created a big stir with the introduction of its Rocket Mortgage, a completely online, automated, paperless mortgage application process that enables a consumer to prequalify for a loan in less than eight minutes. This proves that mort- gage applications can be swiftly and electronically verified for compliance - and that the entire front end of the process can be automated. Instead of requiring borrowers to scan and up- load key mortgage documents as PDFs, things such as employment, income and assets can be automatically verified through integrations with various systems of record, thus greatly expediting the process and ensuring greater data and document integrity. Once again, Fannie and Freddie led the way with their UMDPs. They also created the Uniform Appraisal Dataset to be compatible with the MISMO 2.4 data format so that appraisals could be electronically verified for compliance via the Uniform Collateral Data Portals. 

Electronic vault and audit trail 

In the new data-driven world, the ability to track not only when a docu- ment was delivered, but also what the data payload in it was all along the mortgage process, will be crucial to providing a defensible position on the accuracy of the disclosure for future CFPB compliance audits or if anyone else contests the legality of the loan over time. 

The beautiful thing about an e- mortgage is that one stores not only the document (legal view), but also the data and date stamp of when the document was created and sent, pro- viding a historical record of events that can be played back like a video for proof of compliance. Because the new documents are “intelligent,” the ability to verify compliance of the data within the document provides irre- futable proof of compliance. 

TRID also requires lenders to track and document many delivery milestones. From the original loan es- timate, to intent to proceed, to change of circumstances, to three- day delivery and receipt of delivery verification of the final closing disclo- sure, this should not be a separate system or process from the rest of a lender’s compliance verification pro- cess. The ability to capture the source XML data and the document, along with a date and time stamp of the event, is what the e-vault is really all about. This is really what the CF- PB was thinking when it mandated that the lender implement a compli- ance management system (CMS) to document compliance all along the mortgage manufacturing process. 

The minimum file retention of the closing disclosure is five years. A lender might as well keep copies of everything else to document overall compliance. 

No more passing the ‘hot potato’ 

One other critical requirement of TRID is that everyone who owns the asset must verify compliance, as well. If one originates, sells, buys or servic- es the loan and doesn’t verify compli- ance, then one is at risk, as the CFPB is coming after everyone to ensure full compliance of the loan file. 

To that end, our firm is now get- ting requests from investors to in- clude copies of both the original loan estimate and final closing disclosure, along with the closing documents. But again, that is not near enough to prove compliance of the loan file and process with TRID. 

Online is where the consumer is 

Even if one is still not convinced that an e-mortgage process is superi- or from an efficiency and compliance perspective, one can no longer ignore that in order to do business today, one must go online to capture the consumer. Today’s millennials prefer to start and stay online to complete the mortgage process. They don’t want to have to physically drive to an office and sign a bunch of paper documents. Handling the process face-to- face is totally foreign to them. It’s so much more convenient to send a mobile notary to e-notarize and execute the final remaining documents, with all of the others being executed four to five days prior online in the com- fort of one’s own home. Reducing the actual closing to a 10-minute process is the way to do business with this wave of consumers who are increas- ingly gaining buying power each year. 

Did the industry not learn anything from the mortgage meltdown? Billions were spent in fines and fees be- cause lenders could not document what they had done. Many key docu- ments were lost, and the follow-up in manually processing thousands of modifications was not much better. Providing a total e-closing process is the only way to go. 

Start electronic, stay electronic 

Today, lenders should only need to “paper out” when they want to provide someone with a copy. Taking paper documents and putting them through optical character recognition is not the answer, either. In a full e-mortgage world, the data is input di- rectly into the system of record, and the documents are e-signed and e-notarized in the same system. All of the data in the documents can be verified electronically and can be “rep and warranted” for compliance. 

At this point, there is no benefit to relying on paper - there are only downsides, and significant ones at that. The use of incomplete or inaccurate paper documents can result in the following: 

■ Extended locks;
■ Trailing docs;
■ Manual verification of the closing disclosure;
■ Increased risk of non-compliance and exposure;
■ Increased time and costs for staff training;
■ Reduced transparency; and
■ A lack of control.

Going 100% paperless, on the other hand, yields numerous benefits. Lenders are able to fund with certainty; turn times are improved; shorter closing times and times to close are real- ized; a superior customer experience is established; issues/surprises at the closing table are avoided; compliance is automatically verified, and risk is greatly reduced; a full electronic audit trail is securely maintained in an e-vault, with record retention to satisfy the electronic evidence requirement; investors are able to fund without ex- ceptions or trailing documents; and consumers enjoy a much more expedient process that accompanies much-needed visibility and access to online tools. Simply put, the overall process becomes unprecedentedly consistent and efficient. 

Get ready - it’s really coming this time 

The GSEs have accepted e-notes for quite some time now and are ar- dent proponents of the e-mortgage. Today, lenders not only have enormous responsibility to be compliant at all times, but they also must prove compliance adherence when called upon. Investors and servicers must also verify compliance, as well. TRID dictates that entities directly involved with the loan file must be able to demonstrate full compliance at all times. An e-mortgage solves all of this with a well-documented historical record of events that are time-and-date-stamped to show detailed proof of compliance. 

From a marketing perspective, millennials are quickly gaining buying power and will become a business-critical market to serve moving forward. They want to conduct much of the mortgage process online. Those lenders that don’t have an e-mortgage process in place will be at a competi- tive disadvantage sooner rather than later. 

As the regulatory environment in- tensifies and the CFPB continues its policing, we may reach a point where the LOS no longer serves as the core system of record - at least when it comes to compliance. Instead, the development of a comprehensive CMS will be the ultimate keeper and controller of compliance data, working with the LOS via an integration to share relevant information. 

So what are lenders waiting for? 

The platforms already exist to go “e,” the regs certainly encourage lenders to go this route sooner rather than later, and the customer is online, so what are lenders waiting for? Many refuse to change. Others refuse to educate themselves - or they refuse to see that there are no legal issues with moving forward. Still, others are waiting to see exactly how the CFPB handles its audits in the future. 

With the minimum fine for a minor infraction now at about $5,000 a day, a lender could pay a hefty price for procrastination. Lenders had better get ready now, or some may find themselves in a very precarious situation. 

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.

Press Release:
Major partnership enables DocMagic to compliantly process a fully paperless, true mortgage eClosing - from start to finish

TORRANCE, Calif., March 10, 2015 - DocMagic, Inc., the premier provider of fully-compliant loan document preparation, compliance, eSign and eDelivery solutions, announced today that it formed an exclusive strategic alliance with World Wide Notary, Inc. (WWN), a pioneering developer of electronic notarization services. The partnership integrates WWN's patent pending DigaSign eNotary technology into DocMagic's eServices platform to deliver a fully paperless eClosing solution.

The solution allows borrowers, lenders, settlement agents and mobile notaries to eSign documents and eNotarize - both online and offline. As a result, the entire closing process is streamlined, paper is eliminated, costs are reduced and compliance is ensured.

"The addition of WWN's advanced eNotary capability adds significant value to our platform by keeping mortgage closing documents 100 percent paperless from eDisclosure to eClosing," said Dominic Iannitti, president and CEO of DocMagic. "DocMagic has systematically been putting the necessary pieces in place to transform the company into a true end-to-end eServices solutions provider. Our exclusive arrangement with WWN incorporates a critical component: compliant eNotarizations. Without compliant eNotary capability, a fully paperless eClosing would be impossible to achieve."

WWN is one of the most dominant eNotarization companies and has long been at the forefront of educating and lobbying the state Attorneys General and Secretaries of State to accept eNotaries in a variety of different industries. The company's technology has been certified by multiple Secretaries of State under the National Association of Secretaries of State (NASS) eNotary standards; and, in all states that have approved the Uniform Electronic Transactions Act (UETA).

A number of efficiencies accompany WWN's DigaSign eNotary technology that includes dramatically speeding up the notary process on mortgage documents, with Internet connection or without, ensuring strict compliance adherence is met, establishing detailed audit trails, reducing errors, slashing processing costs, reducing risk, and enhancing the overall borrower closing experience. The solution centralizes and streamlines the entire eNotarization process.

"DocMagic is the leading loan document preparation software company in the mortgage industry and an ideal partner to marry our technologies," said Bob Rice, CEO of WWN. "To date, most eClosings have just been hybrids, meaning: a majority of the lender documents could be eSigned, but those that require a notaries' signature and seal had to be printed to paper and ink signed. Together, our technologies eliminate that hard stop in the process and allow borrowers to effortlessly eSign mortgage documents, now including those that require the presence of a notary."

Under the agreement, DocMagic has exclusive rights to utilize WWN's eNotary platform within the mortgage industry for an extended period of time. The two companies have already begun introducing the service to clients.

About DocMagic:
DocMagic, Inc. 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 constantly 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/.

About World Wide Notary:
Based in Vernon, Texas and founded in 2003, World Wide Notary (WWN) has developed DigaSign, an innovative, simple, Internet-based service that expedites the signing and/or notarization of documents by utilizing electronic and digital signatures and electronic notarizations. WWN completed the first fully electronic, mortgage closing in California in 2008 and the first electronic real estate closing in Texas in 2004. Pioneering electronic signatures, as early as 1996, WWN's management team has many years of experience working with stringent Federal mandates, such as HIPAA, E-SIGN and UETA regarding security and the use of electronic and digital signatures. Visit the company's website for more information http://www.wwnotary.com/.