| Electronic Closing | eClosing
| In the eMortgage process, virtually all of the lender's internal closing department's tasks are automated, taking less time to complete and requiring fewer resources.
Among other items, this includes document package inspection, redrawing of documents, separating buyer and seller documents, gathering timely payoff data, generating closing conditions, preparing the HUD-1, conducting the pre-funding audit, and sending documents to the title company.
A loan closed using a computer is the most obvious change in an electronic closing. There are three types of technology that can be used to electronically sign loan documents at closing. The first type of electronic signature is one everyone is familiar with: the click-thru agreement. Click-thru agreements appear in both packaged software license agreements and web sign up forms where the user is asked to affirm they agree with the presented conditions. This type of electronic signature is available to anyone with a computer and web browser.
The second type of electronic signature uses a signing pad to capture a digital resemblance of the user's handwritten signature. Signing pad units have become very common at major US retailers, such as Wal-Mart and Home Depot, so consumers should feel comfortable with this method. Given the widespread adoption, many lenders think this method best approximates the experience of signing on paper.
The third type of electronic signature is the digital signature, commonly referred to as a Certificate. Digital Certificates use sophisticated algorithms and sometimes hardware devices to affix a mathematical representation of the signature to the document. This method provides the most protection against tampering, and is often an investor requirement for parties in the transaction.
In the eMortgage process, closing agents are far more productive because loans are moved through the title company system more efficiently and closings are conducted faster because of the efficiencies of electronic document management and signing.
SMARTDocs offer the ability to provide in-document explanations for variable items, and are electronically checked to ensure that they have been completely and correctly executed.
Mobile notaries allow purchasers to execute closing documents in virtually any location using mobile signature pads. Because of their mobility and reliance on electronic technology, mobile notaries can close electronic loans in minutes instead of hours, closing more loans in less time with fewer errors.