by - 11:22 AM

Electronic mortgages, or emortgages, are generating excitement in business and lending circles alike with the promise of eliminating paper and creating value by providing an entirely electronic process for the execution of mortgage transactions. emortgage promise to revolutionize the mortgage banking industry and save lenders, settlement agents, investors, and borrowers thousands of dollars.

In the traditional paper-based mortgage process, loan documents are created, executed, and stored as paper files. In the eMortgage process, loan documents are converted to an electronic format known as a SMARTDoc. SMARTDocs are based on XML, an Internet-based technology that allows the document itself and the data that fills the document to be separated. Loan-specific data is used in the SMARTDoc and throughout the process, eliminating the need for duplicate data entry. Using SMARTDocs, loan documents are queried, audited, executed, transferred, and archived entirely in the electronic medium.

Industry leaders, including several lenders, Fannie Mae, Freddie Mac and the MBA's standards organization MISMO have been developing data standards and processes since early 2001. The implications for change in an all electronic mortgage process are significant. Entire processes are automated, some are eliminated, and other processes are significantly different. The most significant area of change in the process is the closing, which takes place on a computer, but the origination process is also materially affected. Brought to you by encomia.com


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