Notaries may soon see a rise in paperless mortgages, driven by changing industry standards and new regulations, according to a recent article in the American Banker.
Among other things, the article cited a 2012 industry survey that found that 43 percent of lenders expect more than half of all mortgages will be closed electronically by 2016. That’s a 54-percent increase from 2011.
Mortgage industry professionals see the ability to create an audit trail as one of the most important benefits of paperless mortgages, the survey found. This will help lenders comply with the raft of new government regulations and industry initiatives.
“We’ve been waiting for lenders, closing agents and county recorders to go paperless for some time,” said William A. Anderson, the NNA’s Vice President of Best Practices. “NNA members that I talk to about e-mortgages are ready to go; they wish they could start handling these transactions today.” Electronic mortgages will still require borrowers to have their signatures notarized on the deed of trust or any other loan documents requiring notarization. E-mortgage transactions should help Signing Agents do their jobs more quickly and efficiently, and at a lower cost too, since there will be no loan documents to print for the signing.
The use of this technology will require cooperation among lenders, borrowers, closing agents and servicers who must all work together to process an electronic loan document.