DocuTech Provides Insight on E-Closings and Compliance Issues

DocuTech is a trusted resource for the mortgage industry, and our staff are constantly providing insight and advice through interviews and articles in the press.

Did you miss us? Below are some of the highlights we have shared with lenders just like you this year.

E-Disclosures and E-Closings

With the passage of RESPA, one of the hottest topics in the industry has been the adoption of e-disclosures. DocuTech COO, Scott Stucky, wrote an article in January’s Scotsman Guide on how to save time using e-disclosures. The article outlines the benefits of using e-disclosures over paper ones, including improved tracking and compliance. Read the full article at Scotsman Guide.

Scott also sees e-disclosures as the first wave of an eventual move to electronic closings.

“The electronic delivery of disclosures is already happening in a big way,  Most of our medium and large lenders are taking advantage of electronic disclosure delivery, and with the re-disclosure requirements associated with MDIA and RESPA, it only makes financial sense to do so.” – Scott Stucky, Mortgage Technology, March 25, 2010

In April, Scott expanded on this thought by telling readers, “As long as the early adopters continue to see cost and time savings with e-closings, I envision 40% to 50% of mortgage transactions will be conducted electronically in five years.”

Compliance Issues

DocuTech is often called on to help explain the impact of regulations. RESPA has been the biggest compliance of the year, and DocuTech’s vice president of Compliance, Fred Gooch, explained to Mortgage Technology in January how technology can make compliance easier: “Many lenders are not using technology to the fullest when it comes to RESPA compliance. One way to leverage technology to ensure RESPA compliance is to use the same system to generate initial disclosures and closing documents.”

In February, Fred also cautioned lenders looking for a shortcut that technology usage is critical, but proper processes must still be followed: “I believe technology is crucial in navigating today’s complex regulatory structure and would never recommend that lenders forego utilizing good technology as an important part of their compliance process. Yet technology is ineffective if it is improperly implemented or if there is no one to train employees how to use it and to enforce its application.”

Predatory lending continues to be a focus of regulators. Fred shared tips on how to fight predatory lending using document technology to the readers of National Mortgage Professional in April. He writes, “To avoid penalties for inadvertently funding a high-cost loan or messing up a disclosure, lenders must understand what the rules mean. More importantly, they need to implement systems to reduce the risk of funding a high-cost loan and improve the distribution of initial disclosures.”

Of course, thanks to you, DocuTech continues to grow. We announced in March that our market penetration has increased by 140 percent. Check out the full announcement, along with all our news announcements, on our News Page.