Mortgage lenders say regulations have stymied move to paperless

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Nearly 9 out of 10 mortgage lenders say the pressure and financial resources required to comply with industry regulations is hurting their ability to offer paperless mortgages, National Mortgage News reported, citing a Xerox survey.

While more survey respondents said they had an electronic document system already in place than in last year’s survey (63 percent vs. 55 percent), a smaller share (68 percent) believe that more than half of all closings within the next seven years would be an e-mortgage, down from 79 percent.

Around three-quarters of respondents each said that their paperless mortgage plans have been hindered by the limited acceptance of e-notes by the secondary market and the fact that the U.S. Department of Housing and Urban Development (HUD) will not accept e-signatures.

Source: National Mortgage News