Industry News

Way without the will: Automating the real estate loan process

Technology is there, but so is resistance to change

CABO SAN LUCAS, Mexico -- Fully automating the mortgage closing and delivery process could knock 2 percent off the cost of loans for borrowers, according to Chris Peirson, founding partner in the Dallas law firm Peirson Patterson LLP. That creates a strong incentive to overhaul what is now a cumbersome, inefficient and fragmented system, but not strong enough yet to overcome the resistance to change, Peirson told mortgage industry executives who gathered in Cabo San Lucas last week to attend the "Mid-Winter Thaw" conference sponsored by United General Title Insurance Co. The enactment of the "E-Sign" law in 2000 laid the foundation for a fully electronic process, Peirson explained, not just because it permitted electronic closings, but because it opened the door to the electronic delivery of mortgage data. "That was the signal to the primary and secondary markets that the game had changed," she said. With e-sign in place, the electronic packaging and delivery of mortgages is no longe...