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Matt peterson is president and CEO of eFile-
Cabinet Inc. Founded in 2001, eFileCabinet
Inc. began as a cutting-edge tool to store
records digitally in accounting firms and has
since expanded to include numerous verti-
cal markets. As it grew, eFileCabinet devel-
oped into a full-fledged electronic document-management
solution designed to help organizations capture, manage
and protect their data. eFileCabinet Inc. distributes its solu-
tions directly and through a worldwide network of partners.
Visit efilecabinet.com or call (877) 574-5505.
With the economy relatively back on track, mortgage
origination is hitting new highs for many banks and brokerages. According to Lender Processing Services, there
were about 8. 6 million new loans originated last year
— the most since 2007. With those originations came
countless sheets of printed paper, a case in point for
digitization and document-management soft ware.
Many mortgage companies remain skeptical of paperless technology, however, and still could learn more
about the benefits that paperless origination can offer.
What can your organization gain in moving away from
For more than three decades, loan origination has
grown in scope and complexity. In addition, stringent
regulations have encouraged an increase in the quantity of documentation required to underwrite a loan. As
lenders scramble to stay compliant with a growing list
of audit imperatives — and as they struggle to manage
a large pool of loans in what continues to be a high-vigilance environment — the volume of paper required
for the loan-origination process may grow even further.
For years, many within the mortgage industry have
dismissed paperless loan origination as impractical.
The sheer volume of paperwork that’s involved in the
loan process often is cited as an impassable hurdle for
the implementation of a paper-free environment.
Secure, cloud-based document-management solutions can eliminate the need for physical paperwork,
however, and that transition already may be on its way.
Consider the fact that a large number of borrowers now
complete their mortgage applications online. From the
point of a loan’s application to its actual origination
and closing, document-management software can do
more than create scanned copies of physical documents. A comprehensive cloud-based solution can
digitize documents and make them accessible under
an audit-compliant, paperless framework.
Originators and lenders
Creating a paperless origination office has several advantages for originators, lenders and borrowers. Understanding these benefits is key to improving the efficiency
and security of your company’s origination function.
Going paperless holds much greater
relevance in the mortgage industry today
than it did a decade ago. The political, financial and le-
gal constraints that have enveloped the industry since
2007 have placed compliance at the forefront of mort-
gage professionals’ priorities.
Two of the most operations-critical advantages of
a paperless origination office are the ease of compliance and an increase in the accessibility of paperwork involved in the origination process. Document-management systems that digitize, categorize and
provide secure, access-controlled storage can ensure
automatic compliance with several standards. This
eliminates the need for audit housekeeping.
As the industry moves toward e-mortgage solutions
and making paperless origination a reality, cloud-based
systems may gain relevance in supporting core administrative tasks through the use of imaging, digital signatures and document portability without having to rely
on expensive hardware or server upgrades. In this way,
document-management software can provide secure
cloud-storage services that don’t require significant investments in information-technology infrastructure, resulting in leaner, more profitable operations.
because title companies, lenders, attorneys, county
recorders and industry officials traditionally have required mountains of expensive and less secure methods of document-recording services (i.e., runners,
couriers and express-mail services), electronic recording solutions have been in high demand. Numerous
technology companies have worked hard to produce
efficient electronic solutions that allow organizations
to file and record documents with a county clerk or
recorder’s office via the Web.
More important, many of these solutions also are integrated with title- and land-record management systems. This means that businesses can help their loan
processes become paperless all the way from the point
of a document’s creation and filing to the point of its recording and archiving within various land-record management systems. With the right technology, mortgage
companies can become more profitable through the application of class-leading, user-friendly software.
Brokers and customers
Throughout a mortgage’s life cycle, brokers han-
dle a huge quantity of their borrowers’ documenta-
tion. between customers’ pay slips, credit reports,
property appraisals and legal disclosures, the
volume of paperwork that a broker handles can feel
Placing these documents on a cloud-storage platform helps ensure that brokers submit all relevant
documentation to the intended recipients and maintain this documentation in an access-controlled folder.
This has the potential to speed up a loan’s underwriting function, as all stakeholders in the process can
have easy access to the documents that are required
to process the loan.
It’s your customers, however, who may have the
most to gain from a paperless document-management
solution. For years, customers have had to face the delays of having to submit paper documents to qualify
for a loan. A paperless document solution not only
accepts digitized documents, but in conjunction with
an e-mortgage solution, can process and store application and property data. In the future, borrowers
may be able to upload loan documents directly into a
document-management program, reducing the time required to complete an application even further.
• • •
The journey to paperless mortgage origination is one
that can begin only by believing that the end goal
of completely electronic operations can be made
real. Comprehensive cloud-management software
not only can improve productivity and reduce over-
heads, but also can result in faster file retrieval and
quicker turnaround times for borrowers. A paperless,
domain-customized solution can deliver these ben-
efits quickly and securely, transforming origination
operations into more customer-friendly, efficient and
compliant processes. •