Document Processing Systems announced this week that it had closed what it calls the nation’s first successful implementation of a fully paperless, all-electronic mortgage.
The mortgage was closed using DPS eMortgage Studio, which was used by all parties, including lender, document provider, title company, settlement agent, notary and borrower to electronically create, execute, register and store all documents for the settlement.
“This process represents a giant leap forward in the way mortgage loans are settled,” said Paul Rakowicz, president of DPS. “As lenders and title companies begin integrating this new paperless environment into the mortgage loan process, they will see a large decrease in the number of problems associated with missing documents, missing or incorrect signatures, and incorrect information on documents. This is a huge stride in quality control which presently costs the industry hundreds of millions of dollars.”
DPS partner 1st Advantage Mortgage LLC of Chicago originated the loan. After the borrower, notary and settlement agent electronically “signed” the documents – using a mouse and clicking on boxes on the screen – 1st Advantage registerd the loan on the MERS eRegistry, making the loan immediately available on the secondary market.
MERS is an electronic loan registry created by the real estate finance industry to eliminate assignments when trading mortgage loans.
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