Mortgage brokers are increasing originations and reducing time, money and errors by electronically submitting loan packages to wholesale lenders, according to a recent survey.
Advectis Inc., a digital document vendor, said it polled 380 of its mortgage broker users to better understand how electronic submissions have affected the "time savings and loan processing workflow."
Over 80 percent said using a paperless submission process has streamlined the approval and condition notification processes as well as decreased turnaround time, according to the Atlanta, Ga.-based company. Almost half said it has them helped originate more loans.
Jackie Brown, a processor for five years at Citizens Home Mortgage, said the process has resulted in a quicker turnaround time and it ensures the accuracy of what transmissions have occurred.
"It's always legible," Brown told MortgageDaily.com. "I'd love to have it on all lenders."
Advectis VP of Marketing Sami Jajeh said the paperless solution is an on-demand service hosted on the Internet that lenders can use with their brokers to transact their mortgage loan financing, from start to finish.
Jajeh told MortgageDaily.com that the amount of phone-based follow-up decreases because conditions and notifications are managed electronically and all parties can have access to real-time updates.
Ninety-three percent of those polled agreed it was at least somewhat important for all parties to have access to the electronic loan folder with 64 percent saying it was very important, according to the survey.
Kate Jackson, a processor for 20 years said Rochester Area Mortgage Services, uses Advectis for submissions with HSBC and she finds it very simple to use. "It's so easy," she explained, "you plug in your loan number, it can create your cover sheets to fax your conditions, and you can see what has been sent, reviewed and when it was signed off."
Those are important factors for time and cost savings, according to survey participant Mark Rasberry, owner of The Mortgage Shop, Inc. Rasberry said he sees a savings in UPS and overnight charges as the company usually sends out three or four packages a day.
"Another huge advantage is that packages don't get lost," he told MortgageDaily.com. "It's very easy to verify that they received it (the loan file).
He said his company has been using the paperless solution for six months with wholesale lender InterFirst ABN AMRO.
While Rasberry said he couldn't think of any disadvantage to using the system, he noted it would be great for more lenders to offer the paperless solution.