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Dear Mortgage Industry Leader,
Undoubtedly you have heard the term “paperless mortgage” and “eMortgage” used recently at conferences, staff meetings and in the trade press, but what does it mean for the future of your business and the industry as a whole?
At the Mortgage Bankers Association (MBA), we define an eMortgage as, “A mortgage where the critical loan documentation — at a minimum the promissory note, and preferably also the security instrument and other closing docs — are created electronically, executed electronically, transferred electronically and stored electronically. AKA — the paperless mortgage.”
Industry analysts agree that the future growth, efficiency and profitability of the mortgage industry are constrained by our reliance on paper. Now is the time for you to take advantage of the groundwork that has already been laid and start planning for your implementation of the eMortgage process, especially with the cost pressures associated with the current downturn in origination volumes.
Under the leadership of MBA, volunteers from our member companies in cooperation with other industry participants have made significant progress in making the eMortgage a reality. This effort has involved the combined talents of lawyers, business process and technology experts, and business leaders to create an infrastructure that will move us from our current dependence on paper to ultimately processing every transaction electronically. Virtually all of the requirements are in place today and ready to use. We are now in the process of identifying industry leaders, like you, who have the authority and desire to make it happen in their organizations.
To that end, I invite you to read the enclosed Executive Summary and Benefits sections of the eMortgage Guide, published by MISMO®, MBA’s technology standards subsidiary. I encourage you to discuss these with your executive management team, complete the brief survey enclosed, and return it to us.
Your response will enable MBA to better understand where our members are on the road to implementing eMortgages and in turn ensure we are providing you with the appropriate support to achieve our common goal of going paperless.
Your response will make a difference.
Sincerely,
David G. Kittle, CMB
Vice Chairman, Mortgage Bankers Association
President and Chief Executive Officer
Principle Wholesale Lending, Inc.
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