eSignings for RESPA: What are They and How do They Benefit the Mortgage Industy?

eSignings are document signings that are completed electronically.  These benefit the mortagage industry a great deal!  Some systems have the flexibility to allow an actual signature by the borrower or to offer the user a preset signature choice that shows a variety of signatures to choose from.  eSignings are becoming more in demand than ever before.  The mortgage industry is being completely transformed by having access to this service.

 Top 3 Benefits of eSignings:

 1. Time.  Mortgage Brokers/Bankers/Loan Officers have the benefits of saving time and money by processing their RESPA docs (loan applications) in a matter of minutes. Normally the process would involve having a notary go out to the customer’s home or office to get the loan application signed and mailed back to the lender. 

 2.  Money.  Some brokers mail the RESPA docs to the customer with a prepaid envelope back to the lender’s office.  The approximate upfront cost for this service is $30 for the Fed Ex labels.  Even this doesn’t guarantee there won’t be a delay in time for the submissions to get where they should, when they should.

 3. Satisfaction.  When methods are made simple and quick to the borrower, you create borrower satisfaction.  That in turn will produce more business through word-of-mouth and other referrals.

 With eSignings, although the notary is not required to complete the transaction, some brokers will still require a notary instead.  Some need both eSignings and traditional paper signings.  Some just prefer the face to face meeting and to have a ‘real person’ handling everything.  

For those that do not, eSignings is the perfect scenario. It allows the mortgage broker to get loans closed faster.  The faster you get the RESPA (loan applications) signed, the sooner your rate is locked and secured.  This leads to a speedy approval and quicker closings, which is critical with lenders being that loan processing takes quite a bit of time to complete. 

When in the mortgage industry where time is of the essence, when you find something that can save time, this is a huge plus for your borrower and for your pipeline.  The faster loans are closed, the faster the broker/banker has the availability to sell and increase loan productivity, meaning more loans for you to work on as well.

The operator/owner/manager of the mortgage company also has the huge benefit of reducing costs.  Whenever you can lower expenses it just makes cents! No more paying the cost for a face to face meeting or package delivery costs — even if you mailed the docs directly to the borrower.  Remember there is postage to send it back to the lender.  The ultimate benefit is borrower satisfaction.

For notaries interested in training on the eSigning process and becoming eSigning certified, I will also be providing assistance via phone to complete the process.  Our team is looking to expand, so please contact us today.

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