As defaults, foreclosures and modifications become the new residential real estate lending vernacular, speedy automated loan execution technology is beginning its own migration to the mortgage market’s underbelly-turned-mainstream.
One example is the deployment of quick-time loan modification technology at Wingspan Portfolio Advisors—an effort to turn a multi-week loan salvage process into an affair that can last only a few minutes, ostensibly in time to keep a borrower in his or her home. Wingspan will offer the product to firms servicing poorly performing loans. Wingspan will also use the technology, as it does some mortgage investing of its own.
Steven Horne, Wingspan Portfolio Advisors’ founder and CEO, says one of the most common reasons loan modifications fail is borrowers often give up on a transaction during the period between agreeing to the loan modification and signing the paper documents that create the new loan, a span of time that can range from several days to a number of weeks. “If we can deliver the documents to the borrower closer to the time of the negotiation of the modification deal, that makes it more immediate for the borrower and more likely the modification will close,” Horne says.
Users will integrate SigniaDocs eModification technology with Wingspan’s portfolio advisors platform, allowing Wingspan to leverage a web service to instantly send documentation to the borrower while he or she is still in close contact with the loan officer. Once a modification agreement is reached, the borrower receives a secure link to SigniaDocs’ “eVault,” where the documents reside. Those documents are executed on the spot with “click to sign” signatures and the deal is finalized. “It’s all about making this quick and easy,” says Tim Anderson, president of SigniaDocs. “If you have to wait 90 days to have a modification signed and returned, the borrower can miss another three payments. You are trying to keep that borrower in his home.”