A change in one warehouse lender’s funding process through the utilization of digital notes is expected to speed up the mortgage funding process by days.
A news release Wednesday from Flagstar Bank indicated that the financial institution will now accept eNotes in order to fund its warehouse lending transactions.
According to the Troy, Michigan-based company, once the eWarehouse line is requested and approved, an eNote is instantly delivered to Flagstar’s eVault and registered with MERS.
While the offline funding process currently takes days, the new process is expected to reduce the process to seconds.
“This is great news for our customers,” Joe Lathrop, head of warehouse lending, said in the statement. “They’ll be able to clear their warehouse lines faster, have more accuracy and security, and best of all, originate more loans without increasing their credit line.”
But Lathrop noted that Flagstar will still
accommodate customers who want to continue using paper.
