The convenience of a process is an impressive feature for consumers who appreciate the time and effort that they save through digital cycles for any process. Be it ordering food, clothes, groceries, or a cab, everyone wants a quick and easy way around. With GPS tracking enabled systems that help one track their purchase, the ease of carrying out as many chores and errands as possible from the comfort of home or office is a big factor in the sales pitch of a product or a service. Lenders realized that they were competing with fintech and P2P companies that were offering quick digital loans and eating into their market share. It was a matter of time before banks, that did not want to be left behind, started offering digital mortgages, right from onboarding through omni channels to electronic closings.
Electronic closings save time for both the homebuyers and the lenders by reducing the closing cycle by at least 2-3 days. The time taken for a traditional pen-paper promissory note and notarization of the documents is effectively reduced through eNotes and RON. The entire process of electronic closings can be carried out virtually without the buyer’s physical presence.
A secure online platform is used for electronic execution of the closing after which the loan is effective and the property is mortgaged. The quick efficacy of the platform aids in improving the experience of the homebuyer as it is that day that they will remember for a long time. Since homebuying involves dreams and is the place where lifelong memories will be created and cherished, any experience that notches up the mood for the day will go a long way in creating long-standing impressions. Here are the ways eClosings works:
Smoother Closings
Electronic closings are conducted virtually using a secure platform to sign electronically on the eNotes which are digital counterparts of traditional paper-based promissory notes. Considering the importance of the document that carries the contents like a promise to repay the amount within the repayment schedule and interest rate agreed upon that holds in terms of compliance and risk metrics for the lender, allowing the ease of operation from a consumer perspective is a winning factor.
Electronic Signature
Using an electronic signature one can sign digitally from a secure platform. The apps can be synced with eNotes and other documentation-related platforms. These apps use encryptions for security around the public and private keys. The private key can be used to decrypt data when used alongside a private key. Overall signature verification works similarly to any login with a password. Using the data points the verification is completed.
Less TAT
Turnaround time for an electronic closing is way less than traditional paper-based closing. Repetitive data that needs to be filled in multiple pages is automatically captured and prefilled, thereby reducing the paperwork. The algorithm is designed to disallow incomplete, inconsistent, or wrong information thereby reducing errors.
Conclusion:
Electronic closings give the appropriate closure to a digital loan as only onboarding and then using the paper route is time-consuming.