This article was first printed in Secondary Marketing Executive, March, 2002. Reprints are available from your SwiftSend sales representative
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Electronic Mortgage Document Delivery Speeds
Closings and Cuts Costs
By Randy PrakkenMortgage
closings are time-critical; eliminating a single day is extremely valuable for
borrowers and lenders alike. Because
electronic document delivery (EDD) does just that, increasing numbers of
lenders are converting to it in order to streamline processes and better
compete for customers. As
Chris Kernion, president of Homeowners Loan Corp. puts it: “By cutting a full
day out of the process, we are closing more loans.” Kernion adds that electronic delivery of loan documents saves
Homeowners “time, increases customer service, and saves thousands of dollars a
month on courier and overnight delivery charges.” Kernion
is so convinced of the value of electronic delivery of mortgage documents that
he says, “In a year, I think this is how everyone will be sending loan
documents to Closing – anyone who doesn’t will be at a serious competitive
disadvantage.” Leveling the playing fieldMartin Clem, president of CFS Inc., a leading
mortgage operations consulting firm with expertise in electronic delivery of
loan documents, says EDD is a classic example of technology leveling the
playing field between large and small lenders: “Because it requires no
infrastructure, web-based electronic document delivery gives even the smallest
mortgage company the ability to print straight to the closing table for same
day loan closing – something that only large lenders were able to do,” “In
addition, it increases productivity and service. My customers wonder what they ever did without it.” With
such compelling benefits in an industry as competitive as mortgage lending, it
is not surprising that the question is no longer “Should we try it?” Now it’s “How can we afford not to?” and
“How do we evaluate and select the best product for our needs?” This article offers suggestions of what to
look for, but first a little background on how EDD works in general, and why
it’s far superior to email for sensitive mortgage documents. How electronic document
delivery works: Basics
Instead
of printing, assembling and sending paper, state-of-the-art web-based
electronic document delivery services provide these capabilities: 1.
The
sender prints a document or a group of documents from various Windows applications
directly to the services web server, enters email addresses and a short text
message in a web browser window and selects desired security measures, such as
passwords. 2.
The
server logs the package of documents into the secure website and sends the email
entered above as a notification to the recipients, with a link to the document
at the bottom. 3.
The
recipients receive the email; click the link, and enter a password (if required
by the sender). The documents are then
viewed on the screen or printed (or both).
4.
If
selected, the service provides a “return receipt” to the sender confirming that
the document was actually read. What to look forWhat do you look for in an electronic
document delivery service? There are
differences. Although the various
electronic delivery services seem superficially similar, the technologies
differ considerably. As a result, it is
important to consider the importance of particular features relative to your
document processes.
q Startup costs vary greatly. Some
services have relatively high startup charges, including on-site equipment, and
require a contractual commitment.
Others charge nothing to try the service with real mortgages, have no
startup charge and no commitment. Make
sure you use a potential service with real loans before you commit. q Price per document delivered appears similar but read the details carefully. Some charge for each document to each
recipient while others treat a package of documents delivered to a number of
recipients as a single delivery. q Ease of use is extremely important. No
real documents can be processed without some installation of software. Some services require complex download /
installation processes with very large download sizes. Others simply and nearly transparently
install relatively small components in-line with first use of the system - no
download is apparent to the user. q Online viewing and selective printing is extremely useful for both review prior to
final delivery and by recipients. Most
services enable only transfer of a print file with no viewing and no way to
print anything but the entire package. q Document access control varies greatly.
Most services cannot retract a document once delivery is initiated. Others allow all access to a document to be
stopped immediately if it is in error, greatly facilitating reliable delivery
of updated versions. q Packages consisting of several different document types may be important to your
processes. Most services allow only the
mortgage package itself to be delivered while others allow arbitrary
combinations of mortgage and Windows office program documents to be combined in
a single delivery. Doc Tracking importantq Delivery tracking is important and varies considerably.
The best systems enable document originators on-line access to any
delivered document, a list of recipients and real-time status showing which
recipients have viewed it and the time they viewed it (i.e. return receipt). q Document origination simplicity is a key component in organizational
efficiency. Some systems make each
'upload' an involved process. Others
make origination as simple as 'printing' directly to a web server from any
Windows application(s) and then selecting an entry in an online address book. q Document pickup simplicity is equally important. Some services require real user computer knowledge ('download')
while others require only a click in a notification email. q Document format and accuracy is critical. Some services convert documents into other formats like Adobe's
PDF which cannot support mixed letter and legal printing and is often
inaccurate rendering documents. Others
use actual printer data which are inherently accurate and support mixed letter
and legal page size printing. q A broad range of products and services is important, especially for larger
companies. Most delivery service companies provide only
the service itself, often using 3rd party software. Larger loan companies and banks will find that the one-time
purchase of a turnkey electronic delivery system is even more cost-effective
and provides control and brand identity benefits as well. q Security is often important. Email
attachments (or any similar process which enables 3rd parties to obtain a copy
of the package) are simply not secure.
Even if the package is encrypted, possession makes 3rd party access much
more likely. Make sure the service you
pick uses highly encrypted links with constantly changing keys. q Flexible security is important. More
security always means more difficult use.
Make sure the service or product you select enables you to select the
level of security and ease of use appropriate for your processes. q Administration and monitoring. The best
systems enable supervisors or others in the originating organizations to track
operation in real-time with on-line reports. While superficially similar, there are many differences between the various electronic delivery products and services. Read closely. Most importantly, test the system extensively with your actual documents and processes before committing to any particular service or product. About the authorRandy Prakken is president and co-founder of SwiftView,
Inc., a company that develops software for viewing, printing, delivering, and
accessing on-line documents and drawings, including the online document
delivery service SwiftSend LoanDocs. |
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