Check all the boxes on your eClose strategy

By: Alisa Grover, Sr. Director, Product Marketing, ICE Mortgage Technology

Without question, the COVID-19 pandemic has changed how the mortgage industry does business. As virtual communications have become a necessity, rather than a preference, emphasis has been placed on eClose and a true digital mortgage experience. In light of this, implementing a clear eClose strategy can help lenders keep pace with industry trends, and move closer to these key digital mortgage benefits: improved efficiencies, shortened lending cycles, and better borrower experiences. 

So, what’s involved in getting this done? Our friends at Falcon Capital Advisors have put together this handy checklist, for starters. While this effort will certainly take some digging and internal analysis, following these steps will get you well on your way to eClose and digital mortgage success.

The eClose checklist for lenders

Provided courtesy of Falcon Capital Advisors

Evaluate your trading partner’s eMortgage policies and readiness to support eClose

☐ Do your investors accept eSigned and eNotarized security instruments or eNotes?

☐ Will your warehouse lenders fund eNotes?

Evaluate your vendors’ readiness to support eMortgages

☐ If you utilize a subservicer, can that vendor subservice eNotes?

☐ Can your document custodian support eMortgages?

☐ Can your quality assurance vendor support eMortgages?

Determine whether RON, IPEN, and eRecording is permitted in the states and counties where you originate loans

☐ In which states/counties do you have higher concentrations of loan originations?

☐ Which types of eClosings are achievable by state eNotarization laws or county eRecording policies?

Assess your operational maturity and readiness to implement eClose

☐ How stable and consistent are your processes today?

☐ Are your operations already in a state of flux due to another initiative?

☐ Do you have the resources for a successful eClose implementation?

Develop your eClosing strategy

☐ What types of eClosings can and should your organization offer?

☐ Is a phased implementation approach right for your organization?  If so, how will it be phased? (e.g., by trading partner, state/county, loan type, branch)

☐ What is the optimum timing for implementation?

Vet your current technology’s eClose capabilities and gaps

☐ Identify the eClose capabilities that your loan origination system (LOS) and document provider may offer.

☐ Ask technology providers about the level of support provided during and after eClose implementation.

☐ Determine if current technology providers are integrated with any eClosing technology providers.

☐ Identify, select and implement any additional solutions (e.g., eClosing platforms, eNote generation sources, eVaults, RON, IPEN) that you will need to have in conjunction with the eClosings that you will be offering.

If your eClosing will include eNotes, complete integration with the MERS® eRegistry…

☐ Coordinate with trading partners and technology providers to facilitate practice transactions.

Review and update internal processes, procedures and policies to accommodate eClose

☐ Ensure that all impacted business areas are accounted for and document any changes to process maps, policies and procedures.

Train staff on new systems and updated eClose processes, policies and procedures

☐ Start communication and change management early.

☐ Educate staff on fundamental eMortgage and eClosing concepts.

☐ Hold system and procedural trainings.

Obtain any required trading partner approvals (warehouse lenders, investors, GSEs)

☐ Ensure that any necessary updates to trading partner agreements are addressed.

Communicate and coordinate your eClosing strategy with settlement companies

☐ Partner with settlement agents to ensure that they have the information, access and training to support your eClosings.

There’s much more to learn, so download the free eBook, titled The Modern Lender’s Guide to eClose, to get informed on how to plan and implement the best eClose strategy.  

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