We're proud to announce that we've been recognized by HousingWire as one of the most innovative and impactful mortgage technology firms in the U.S. housing economy for 2024.

Now in its 12th year, the Tech100 program provides housing professionals with a comprehensive list of market-leading technology providers whose solutions are driving efficiency, transparency, and accessibility across the mortgage supply chain. Industry participants have come to rely on the annually produced list to identify firms with cutting-edge products that effectively address the business challenges lending entities face daily.
“We are honored to earn a spot on HousingWire's 2024 Tech 100 list," said Dominic Iannitti, president and CEO of DocMagic. "Garnering this coveted industry accolade underscores our unwavering dedication to empowering clients in advancing their lending practices amidst the dynamic landscape of the digital mortgage ecosystem.”

HousingWire designated DocMagic a 2024 Tech 100 winner after evaluating the impact of multiple innovations it made in the last year along with supporting metrics. One of those advancements was DocMagic’s official introduction of ADA-Compliant Loan Documents, a project that added tags to each document for ease of accessibility by borrowers with disabilities. DocMagic also added QR code technology to its document generation capabilities, a groundbreaking enhancement that brings major benefits to document-related information management processes. Lastly, to establish a more unified client experience, key enhancements were made to DocMagic’s Total eClose™ platform, proprietary RON technology, and APIs for third-party integrations.

“The technology capabilities and solutions that this year’s Tech100 winning organizations have developed are an absolute testament to the relentless innovation within the real estate and mortgage technology landscape," HW Media Editor in Chief Sarah Wheeler said. “These past few years have been transformative for the industry and these honorees are continuing to bring long-awaited solutions to the challenges that mortgage and real estate professionals have struggled with for decades. Congratulations to all the deserving winners for their outstanding contributions to our ever-evolving industry.”

HousingWire stated that its Tech100 program grows each year, competition among applicants tightens, and the demand for technology in housing increases. The Tech100 program is separated into two groups — Tech100 Mortgage and Tech100 Real Estate — to highlight the achievements of organizations from both sectors. The 2024 HW Tech 100 winners for both groups can be found at https://www.housingwire.com/.

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We're proud to announce that Leah Sommerville, a senior account executive and key member of our eClosing Team, earned a spot on this year’s prestigious Elite Women in Mortgage list published by Mortgage Professional America (MPA).

About The Elite Women Award

The annually-produced award highlights 50 female leaders who are making a difference and driving positive change within the mortgage industry. MPA says the winners represent a league of influential women who go above and beyond for their companies and the industry, exhibit a genuine passion for their craft, have significant accomplishments from the last 12 months, and possess unwavering determination.

“Leah’s expertise in eClosings is instrumental in guaranteeing the success of every client who chooses to embrace a paperless closing process,” stated Dominic Iannitti, president and CEO of DocMagic. “We commend Leah for her continuous dedication and are thrilled that MPA has honored her outstanding achievements with the prestigious Elite Women distinction.”

Leah Sommerville's eClosing And Mortgage Expertise

As a valued member of DocMagic's team of eClosing specialists, Sommerville is committed to assisting lenders in tailoring an optimal digital mortgage strategy to their unique business needs. Since joining the team in 2018, she has guided numerous lender clients through the transformation from paper processes to the cutting-edge realm of digital mortgages, creating a wave of efficiency and innovation.

“I’m honored to accept the 2023 Elite Women award from MPA and I thank the judges for recognizing my efforts,” stated Sommerville. “The industry has come a long way since introducing eClosings and I look forward to introducing some of the new digital mortgage innovations that DocMagic is developing.”

Notable achievements Sommerville has been a part of in the last 12 months include her involvement in the rollout of DocMagic's new eNotary onboarding program for a national database of notaries, enabling those notaries to attain RON certification on DocMagic’s Total eClose™ platform. Her efforts have helped train hundreds of notaries on how to effectively complete remote online notarization of loan documents with borrowers.

Sommerville also shepherded numerous lenders and secondary market participants through the MERS eRegistry membership process to start producing eNotes and subsequently store them in a secure eVault—guidance that enhances lender ROI, improves liquidity, and moves the industry toward going fully paperless.

In addition, Sommerville helped introduce DocMagic’s e-Eligibility tool, eDecision,™ that audits loans and confirms the type of eClosing that can be compliantly executed. Also notable is that Sommerville closed out 2022 exceeding her sales goal by 65 percent, which she accomplished in a down market despite a steep drop in loan volume.

Currently, Sommerville continues to press on, providing a consultative, hands-on approach to lenders for eClosings, working with industry eClosing partners, and speaking at conferences and events on the topic of digital mortgage automation.

The complete list of 2023 Elite Women winners can be found on MPA’s website.

Related Content:

• DocMagic and Finastra announce integration to transform closings (6/30/2023)
• MISMO seeks comments on VA form & David Garrett speaks on MISMO (6/22/2023)

• CEO Dominic Iannitti’s Best of Finance win spotlights the best mortgage and finance solutions (6/08/23)

Dominic Iannitti, DocMagic’s president and CEO, was selected for the inaugural group of Best of Finance award winners from Inman News, confirming the wide-reaching effects of our eClosing solutions. Inman News—a leading news source for real estate agents, brokers, executives and technology leaders—established the awards category to honor experts in the mortgage and finance space who innovate within residential real estate.

“I am thrilled and honored to be acknowledged as a mortgage finance leader by Inman News,” said Iannitti. “This award underscores our steadfast dedication to service, innovation, and above all, our customers.” And in a digital age where DocMagic’s powerful solutions are driving the adoption of fully paperless eClosings, that dedication to service is key to success.

About The Best Of Finance Award

Inman’s first selected group of Best of Finance award winners, available in full on Inman’s website, is a roster of mortgage and finance experts leading the way in better mortgage and finance services for all. Award recipients were hand selected by Inman’s editorial team—a team experienced in furthering Inman’s mission of sharing innovative and pertinent news about the real estate industry.

Inman shared that the 2023 Best of Finance award recipients were recognized for their commitment to “innovation, service and their immeasurable impact on the residential lending industry.” The CEO of Inman, Emily Paquette, said, “For the first time in Inman history, we are shining a spotlight on the companies and individuals helping to raise the bar for mortgage and financial services. Their dedication to the communities they serve is driving change across our industry.”

The complete list of award winners totaled only 128 recipients out of a large industry that amassed over $2.34 trillion in mortgage originations in 2022 (and that is expected to rebound in 2024). Although 2023 has seen industry revenue decline, flexibility is essential to achieve the rebound that government-sponsored enterprises (GSEs) predict in 2024.

What can lenders learn from following mortgage and finance awards?

Awards like this one highlight industry leaders with proven track records of innovating and evolving. Alongside Iannitti, the Best of Finance winners include leaders in:

• Lending, including correspondent lending
• Borrower payment facilitation
• Insurance
• Government-sponsored securitization
• eClosing, including DocMagic and our comprehensive eClosing platform
• Lender and broker workflow automation
• Other digital solutions

Award lists from trusted industry outlets can offer lenders a valuable chance to survey the industry and get a feel for what other lenders may be doing to stay flexible. The value for lenders in looking at award lists (and associated organizations) is twofold:

1. Lenders can keep an eye on the competition.

Look at award winners and identify any direct or indirect competitors among the lenders represented. Watch what these lenders are doing—how have they pivoted or expanded in the past year, and what can you and others learn from their strategies?

2. Lenders can identify new solutions for their own business.

If vendors are featured among award winners as with the Best of Finance award, you can take a look at award-winning vendor offerings and helpful solutions just by browsing award lists. Investigate digital solutions further to explore unique ways that your business can be flexible and save money.

Interested in paperless eClosing? Learn more about our Total eClose™ platform and how it can lead you and your borrowers through an eClosing step by step.

Whether you find it easy or difficult for your mortgage organization to implement new solutions, it’s crucial to watch industry news for where solutions are headed. The mortgage and finance space is evolving quickly. To keep pace, consider taking a second look at the leaders receiving accolades for their work in mortgage innovation.

Related Content:

• The competitive advantage of eNote technology (5/25/2023)
• Ask the eClosing Team: How do I get started with eClosing? (5/11/2023)

• DocMagic introduces critical ADA-compliant loan documents (4/25/2023)
  
  

Dominic Iannitti, President and CEO of DocMagic, answers questions about eNote adoption — as well as how far the industry, DocMagic and its clients have come using the DocMagic platform. This Q&A was originally featured in HousingWire.

Where does the industry stand in terms of digital adoption, and more specifically the adoption of eNotes? 

Many lenders were considering, or at least researching, digital implementations when the pandemic hit, putting industry adoption on the fast track.

These days lenders are seeking to leverage mortgage technology to streamline the loan process. Many have digital capabilities in place already and with so many warehouse lenders ready to fund eNotes and servicers ready to support them, along with increased expansion in the investor space, the popularity of eNotes is growing.

Talk to us about DocMagic’s setup process for lenders to get started with Total eClose, eNotes and a secure eVault.

We’ve partnered with many lenders who started with a hybrid model and then made the transition to utilize eNotes and, in many cases to completely paperless closings.

eNotes are a game-changer for risk reduction, processing speed and overall efficiency. By leveraging both eNotes and DocMagic’s award-winning eVault technology, lenders can quickly begin to experience an array of eClosing benefits. Our eVault technology has been the industry leader for many years, giving us the expertise to implement and support the critical aspects of eNotes.

DocMagic’s eClosing Team has personally supervised thousands of eClosings. Whether it’s getting set up with MERS®, implementing an eVault to securely store notes, partnering with eNote-ready investors and e-warehouse lenders or servicing eNotes, we wrote the playbook on how to make it happen for lenders and their supply chain partners.

What are some of the efficiencies of eNotes, and how will lenders that implement eNotes now benefit compared to those that wait?

The expediency of eNotes carries through the entire process, from originator, to warehouse, investor, custodian, and servicer in a matter of seconds. Your workforce is more productive, moving loans forward through the pipeline at the speed of a click.

Errors in quality are costly, but especially in this environment. Having everything signed electronically and dated correctly is critical. The eNote can be registered immediately with MERS®, allowing loans to be delivered within minutes of closing — that’s real efficiency.

Organizations that implement eNote technology will gain a competitive advantage over those that wait. The efficiencies, benefits and ROI of eNotes are not a nice to have, but a must. This is positively where the industry is heading.

What should lenders be looking for in a long-term eClosing vendor/partner?

Lenders should start by choosing a vendor with the experience of thousands of successful eClosing transactions. An inexperienced vendor may not have all of the necessary components in place to do business with other providers in the space.

Lenders should also select a vendor offering all hybrid and fully end-to-end paperless eClosings. The best option is a one-stop shop that provides every element of an eClosing. Why go to one vendor for document generation and another for eNotes?

Finally, look for a vendor that can scale to your future growth. DocMagic offers a fully cloud-based service layer and flexible technology designed with capabilities adaptable to every conceivable eClosing option.

Read the original Q&A on HousingWire here.

If you’re interested in exploring eNote adoption for your organization, click here to set up a demo with us. We’re happy to answer all your questions and give you a personal look at how our platform saves time and money.

Related Content:

• Ask the eClosing Team: How do I get started with eClosing? (5/11/2023)

• DocMagic introduces critical ADA-compliant loan documents (4/25/2023)
• Ask the eClosing Team: What are current trends in eClosing adoption? (4/11/2023)

This week, we’re proud to announce we’ve been designated one of the most innovative mortgage technology firms in the U.S. housing economy for 2023 by HousingWire. DocMagic has earned a spot on the coveted list of technology standouts every year since HousingWire began the award program.

Currently in its 11th year, the Tech100 program provides housing professionals with a comprehensive list of the industry's most innovative and impactful organizations. This list is widely used to identify partners and solutions that effectively address the challenges that mortgage lenders face every day.

“We are thrilled and humbled to receive the 2023 Tech100 award,” said Dominic Iannitti, president and CEO of DocMagic. “This recognition reflects the dedication and hard work of our team in pushing the boundaries of innovation in the mortgage industry. At DocMagic, we are committed to staying at the forefront of technology, and to delivering products and solutions that streamline and simplify the mortgage process for everyone involved. We thank the judges and everyone involved in this award for recognizing our efforts and achievements.”

Since 1987, DocMagic has been on a mission to remove paper from mortgage origination and closing processes to facilitate a better overall lending experience. The company has been successful at digitizing critical areas of loan origination, closings, secondary marketing and servicing transactions. In 2014, DocMagic pioneered the industry’s first single source eClosing solution, containing all of the functionality required to facilitate a completely paperless mortgage closing.

In the last year, DocMagic has enhanced many of its core solutions to better serve its clients. For example, remote online notary (RON) functionality was integrated into DocMagic’s Total eClose™ platform. DocMagic launched eDecision, the company’s eEligibility tool, which helps identify the specific type of eClosing that can be conducted in a given region prior to closing. These advancements reflect the company’s commitment to staying ahead of the curve in technology, and to providing the most advanced and comprehensive solutions possible.

Each year the Tech100 program has continued to expand, as the demand for technology in housing continues to progress. This was the fourth year the Tech100 program was separated into two groups — Tech100 Mortgage and Tech100 Real Estate — to highlight the innovation and achievements of organizations within both sectors.

“We're focused on elevating the innovators that are building paths and solutions that enable the largest and most important sector in the U.S. economy to operate efficiently and profitably — the innovators that make housing more accessible and more desirable for the 130 million households that benefit from the stability and economic advantages of homeownership,” said Clayton Collins, CEO of HW Media. “The Tech100 program is the gold standard for organizations in housing who are at the forefront of the kind of innovation that will change the industry forever.”

HousingWire stated that its Tech100 program grows increasingly more competitive each year, and the applicants improve in caliber as the demand for technology in the industry continues to progress. 

Related Content:

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• DocMagic provides eClosing and eVault technology for Barr Group Mortgage’s First eNote Transaction through Click n’ Close’s non-delegated correspondent eNote program (2/16/2023)

• CUSO leaps over hybrid eClose to offer fully electronic loan closings (2/6/2023)

A well-known industry expert in mortgage banking compliance and law, Ales tackles some of the most challenging compliance issues facing the industry with loan documents and eClosings. In the last 12 months, he has successfully taken on multiple impactful company and industry-based projects, which the judges at HousingWire examined closely and determined Ales’ most recent contributions.

“It is refreshing to see that my efforts on the compliance and legal side of mortgage software are having an operational impact,” stated Ales. “We are constantly doing outstanding things at DocMagic to move the industry forward. Both my team and I are honored to be recognized.”

Winners of HW’s Insiders accolade represent a wide range of occupations within the housing economy, from lending and real estate to fintech. According to HW, Insiders are the internal professionals that their companies turn to with their most important or challenging behind-the-scenes projects, and their contributions and hard work lead to superior results.

Among some of Ales’ key contributions were his assistance in developing DocMagic’s e-Eligibility solution, eDecision™. He also added functionality to DocMagic’s loan generation solution that supports the Americans with Disabilities Act (ADA) for the visually impaired to read mortgage loan documents. In addition, Ales worked on the Affordable Housing Initiative (AHIT) for Freddie Mac that helped create first-ever instruments to include subordinate liens.

And always at the top of Ales’ list of business-critical compliance initiatives is to move the mortgage industry toward going paperless. Looking ahead, Ales seeks to add compliance guidelines and functionality for use by Limited English Proficiency (LEP) borrowers to assist them in better interpreting loan documents.

“Each year, the HW Insiders award represents a versatile group of unsung heroes who are vital to the smooth functioning of their organizations,” HousingWire Editor in Chief Sarah Wheeler said. “While they may operate behind the scenes, the tireless work of these honorees has a huge impact on the larger housing ecosystem. We are honored to recognize this impressive group of industry experts.”

The complete list of HousingWire 2022 Insiders winners can be found at https://www.housingwire.com/articles/361547/.

Related Content:

• NMP Selects DocMagic Chief eServices Executive Brian D. Pannell for 2022 Most Connected Mortgage Professionals Award (7/25/2022)

• Mortgage Banker Magazine taps DocMagic CEO with Legends of Lending Award (7/14/2022) 

• PROGRESS in Lending Names DocMagic’s Director of Client Services to 2022 Most Powerful Women in Fintech List (5/19/2022)

DocMagic, Inc., the premier provider of compliant loan document generation, automated regulatory compliance and comprehensive eMortgage services, announced that it attained MISMO’s eClosing System and remote online notarization (RON) certifications for its Total eClose™ solution.

Both certifications are part of MISMO’s eMortgage Technology Certification Program created to support, advance and increase the mortgage industry’s adoption of digital solutions and is specifically designed to facilitate and encourage eClosing transactions. Moreover, the RON certification confirms that the provider's platform, procedures, and policies comply with MISMO standards and the eClosing certification confirms that the platform meets MISMO-specific requirements.

MISMO standards are widely accepted and used throughout the real estate finance industry, and most major institutions, including government agencies and GSEs, which are utilizing MISMO standards to exchange data with business partners. In addition, agencies like the CFPB have made it clear that their examination and data exchange tools will rely on and conform to the MISMO standard.

DocMagic became Certified MISMO Compliant for eClosing in February of this year and is the only document generation provider with the eClosing certification. In 2021, DocMagic’s proprietary RON capability was offered to its existing client base. The company’s Certified RON solution seamlessly integrates with the company’s industry-leading Total eClose platform, enabling lenders and their borrowers to realize a fully digital closing experience.

“We are pleased to have received these important certifications, which establish standards that improve lenders’ ability to evaluate eClosing technology providers,” stated Dominic Iannitti, president and CEO of DocMagic. “DocMagic has consistently championed the utilization of eClosing and RON technology in an effort to move the industry forward. These certifications help facilitate the adoption process and we fully embrace them.”

DocMagic’s Total eClose platform is a single-source solution that contains all components needed to execute fully paperless eClosings. The award-winning innovation was the first of its kind to be introduced to the mortgage industry in 2014 and since that time has gained widespread market adoption.

About DocMagic:

DocMagic, Inc. is the leading provider of fully compliant document generation, automated compliance, eSignature and comprehensive eMortgage solutions for the mortgage industry. Founded in 1987 and headquartered in Torrance, Calif., DocMagic, Inc. develops award-winning software, mobile apps, and web-based systems for the production and delivery of compliant loan document packages. The company’s solutions connect industry participants, promote collaboration, and ensure data integrity to execute precision-based digital lending transactions. The company’s compliance experts and in-house legal staff consistently monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit https://www.docmagic.com/.

About MISMO:

MISMO is the standards development body for the real estate finance industry. MISMO developed a common language for exchanging information for the mortgage finance industry. Today, MISMO standards are accepted and deployed by every type of entity involved in creating mortgages, and they are required by most regulators, housing agencies and the GSEs that participate in the industry. Use of MISMO’s standards has been found to lower per loan costs, improve margins, reduce errors and speed up the loan process by reducing manual, paper-based processes while creating cost savings for the consumer.. For more information, please visit https://www.mismo.org.

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• Black Knight Empower LOS Now Integrated with DocMagic (5/17/2022)

• LoanMAPS™ LOS Integrates with DocMagic increasing compliance while slashing costs (2/24/2022)

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With in-person events back in full swing, we’re excited to announce that DocMagic is hitting the road this fall and attending some of the mortgage industry’s biggest conferences! Check it out:

Sept. 27-28: HousingWire Annual (Frisco, Texas)

DocMagic will be a co-sponsor of the HousingWire Annual event. Several members of DocMagic’s eClosing Team, including Ron Carrillo, Michael Chaney and Leah Sommerville, will be in attendance.

We’ll also be presenting a live demo of our Total eClose solution, along with AutoPrep — our tool that can e-enable any document for paperless closings, even from third-party doc providers — on the main event stage in the Star Ballroom on Sept. 28 at 2:30 pm. Don’t miss it!

If you’re going to be at HousingWire Annual, come find our kiosk. Or better yet, set up a meeting by emailing Terry at tsmith@docmagic.com. 

Oct. 17-20: MBA Annual (San Diego, Calif.)

DocMagic will also be attending MBA Annual. Chris Lewis, our Director of Enterprise Solutions, will be there along with several members of our sales and implementation teams. You can read some of Chris’s analyses on the state of eClosing in the mortgage industry (here and here), previously published in MBA Newslink and The MORTGAGE BANKER magazine, respectively.

Come visit us at Booth 314. To set up a meeting with one of our eClosing experts at MBA Annual, email Terry at tsmith@docmagic.com. 

Dec. 14-16: National Mortgage News Digital (San Diego, Calif.)

In December we’ll be returning to San Diego for National Mortgage News Digital. Come visit our kiosk. We’ll also be presenting a live demo of our Total eClose solution, along with AutoPrep (our tool to e-enable any document for paperless closings, even from third-party doc providers). To schedule a meeting with a DocMagic representative at National Mortgage News Digital, just contact Terry!

Related Content:

• Did You Know: A basic hybrid eClosing is easier than you think? (9/15/2021)
• Ask the eClosing Team: Why are eNotes better than paper? (and other burning questions) (8/18/2021)
• 3 reasons why your post-closing department loves eClosings and eNotes (6/24/2021)

DocMagic has been named to HousingWire’s 2021 Tech100 Mortgage list, which recognizes the mortgage industry’s most innovative and impactful companies.

HousingWire noted that this year’s winners are revolutionizing the mortgage process.

“After the uncertainty and unpredictability of last year, we expected a greater adoption of technology. However, these 100 real estate and mortgage companies took digital disruption to a whole new level and propelled a complete digital revolution, leaving a digital legacy that will impact borrowers, clients, and companies for years to come,” said Brena Nath, HousingWire’s HW+ Managing Editor.  

DocMagic had a record year in 2020, achieving 128% growth over 2019 and helping more than 130 lending institutions successfully implement eClosing strategies and solutions amid a pandemic and an unprecedentedly high-volume lending landscape. Demand spiked for DocMagic’s eClosing solutions, particularly its award-winning 100% paperless Total eClose™ platform and document preparation solution. The company concluded 2020 having performed the most eClosing transactions in its history, to the tune of a 724% increase in eClosings.

DocMagic has received the honor every year since HousingWire announced the inaugural list in 2014.

“Earning HousingWire’s Tech100 award for the eighth straight year is a testament to the incredibly dedicated team we have here at DocMagic and the passion they hold for continuous innovation,” said Dominic Iannitti, president and CEO of DocMagic. “We are elated to receive this award from HousingWire for digitizing key areas of the mortgage process and creating a superior experience across the supply chain.”

HousingWire Editor in Chief Sarah Wheeler, who has been helping to select winners since 2014, said every year the program becomes more competitive. “These companies are truly leading the way to a more innovative housing market.”

Related Content:

• Brian D. Pannell honored with HousingWire's 2020 Tech Trendsetters Award (12/4/2020)
• DocMagic's Lori Johnson honored with HousingWire's 2020 Insiders Award (9/3/2020)
• DocMagic earns a spot on the HW Tech100 for the sixth straight year (3/29/2019)

Welcome to Ask the eClosing Team, a new series where DocMagic’s eClosing pros tackle real questions that we’re hearing from lenders. Today’s response is supplied by eClosing Team leader Dan McGrew, president and CEO of Elite Digital Advisors.

What do lenders need to do to get set up for eNotes?

When a lender wants to produce eNotes, Dan McGrew says one of their first steps should be to get integrated with the MERS eRegistry, which is where the closed eNote will be registered (and ultimately transferred, if it’s sold to an investor down the line). This step could take some time. Lenders should follow the steps on this checklist to prepare for integration. They will also need to sign a MERS eRegistry Addendum, which includes additional terms and conditions related to their use of the eRegistry. After that, a MERS representative will reach out to the lender to continue the integration process.

Free article: Everything you need to know about eNotes

Lenders will also need to set up an eVault to access, manage, and store electronic files such as eNotes, and which can connect to the MERS eRegistry. There are several technology vendors, including DocMagic, who offer such eVault technology.

After that things get a little more complex: Lenders need all of their secondary partners to also be set up for eNotes. “One of the biggest challenges is, do their secondary partners participate in either the funding, servicing, or purchasing of electronic notes?” McGrew said.

Each stakeholder in the chain — including warehouse lenders, sub-servicers, and investors — needs to become a MERS member and to have their own eVault (though they can use different technology vendors for their eVaults. For example, Freddie Mac and the Federal Home Loan Banks system use DocMagic’s eVault technology, but Fannie Mae doesn’t).

Depending on the partner’s willingness to go “e,” getting secondary partners on board can be one of the more difficult parts of the process. McGrew says he usually asks the lender to introduce him to their current partners, such as their warehouse lender. He then reaches out to the warehouse lender, gives them a demo, answers their questions, explains the compliance requirements, and more.

“Once we take the mystery out of it, that typically does the trick,” McGrew said. “But a lot of times they’ll say they’re still not ready. So, in that case I have to go back to the lender and ask them, would you like me to introduce you to some other warehouse lenders that will fund eNotes and have an eVault? And typically, they’ll say yes.”

McGrew may also help lenders find new sub-servicers, investors, or aggregators who are either ready to offer eNotes or willing to do what it takes to begin offering them.

“I can have a lender that's fully committed and fired up to do eNotes, but if their secondary partners don't participate, that’s a big roadblock,” he said.

How long does the eNote setup process take?

That depends entirely on how prepared the lender and their secondary partners are. If the lender’s partners already have eVaults — or are willing to get one — and the lender plans to sell to an investor who already accepts eNotes such as Fannie Mae or Freddie Mac, then the whole process can move fairly quickly. After the lender signs their agreement with MERS, they need to conduct grid testing (the process of testing any eNote being closed), register the eNote with MERS, and then deliver it to the next partner in the chain.

“In an ideal world, from day one we could set them up, do the grid testing in a week and a half, and get them live to producing eNotes in a couple of weeks,” McGrew said.

However, that's rare because the secondary partners usually aren’t already ready for eNotes; it may take everybody a few weeks just to get set up with MERS. “If all the parties in the chain still need an eVault, or if the lender needs to find new partners willing to play ball, then we're looking at 45 to 60 days, at least, to get them set up to produce eNotes,” McGrew said.

The time factor is one of the benefits of choosing DocMagic as a technology vendor — the process can go a lot quicker with the help of experienced eClosing experts. “Our eClosing Team is going to help them get there,” McGrew said. “At DocMagic, we hold your hand like a fishing guide, to walk you through every step of the process."

What’s the main issue stopping more lenders from offering eNotes?

The biggest obstacle — bigger even than recalcitrant secondary partners — is that lenders need to shift their mindset away from the idea that paper is the be-all, end-all in the mortgage industry.

“About 85 to 90 percent of lenders still rely heavily on paper. They’ve spent all their time and energy trying to make paper processes more efficient,” McGrew said. “We’re introducing them to a totally new way of doing things, so the biggest challenge for them is committing to that new mindset.”

McGrew recalled a recent meeting with an investor where the head of the compliance department admitted to having a hard time understanding eNote concepts such as the “controlling location,” “authoritative copy,” and the fact an eNote has multiple copies. The executive said, “We're just accustomed to getting a paper note and taking our thumb and smudging the ink to make sure we have the original.”

During the pandemic, McGrew has seen a sharp uptick in lenders wanting to offer eNotes; however, he’s noticed that many back off when they realize the amount of effort involved.

“They didn't realize what they had to do with MERS, or that their secondary partners had to have eVaults.” he said. “When they discover that, it causes many of them to stop and say, 'We'll figure out a different solution and come back to this at another time.'”

McGrew encourages lenders to bolster their commitment to eNotes because the benefits — which include greater efficiencies and fewer errors — are worth the effort. One lender he works with has been producing eNotes for several months now, but McGrew recalled that when they first started the process, some internal stakeholders were slow to embrace it. He recently asked his contact at that company: “If you went to the folks on your team that were previously hesitant and said, ‘We're going to go back to the old way, to the pure paper process,’ what would be their reaction?”

She laughed and answered, “They would shoot me.”

The eClosing Team can be reached at eClosingTeam@docmagic.com.

Related Content:

• Paradigm shift: 4 key mortgage industry changes over the last year (1/27/2021)
• Relive some key mortgage industry milestones in 2020 (12/29/2020)
• The current state of eClosings: A Q&A with DocMagic's compliance chief (12/17/2020)