Mortgage lender Land Home Financial Services Inc., in collaboration with MERSCORP Holding Inc. (MERS) and Fannie Mae, recently completed its first e-closing via its retail origination channel.
The lender reports that it has been working toward a compliant, next-generation digital mortgage solution for about the past year. This completely electronic closing process involved the use of an e-note.
“Offering e-closing has long been a goal at Land Home, as it unifies the needs and desires of our clients with the regulatory ambition of the Consumer Financial Protection Bureau [CFPB],” says Brad Waite, president and CEO of Land Home, in a release.
Many lenders are now adopting e-mortgage technology in order to meet the needs of millennials, who are almost entirely using online and mobile technology to shop for homes and apply for mortgages. The goal is to create a more simplified and seamless mortgage experience – from application through closing – that takes less time and involves far less paper.
Land Home also worked with PeirsonPatterson LLP, a Dallas-based financial services compliance and technology firm; FirstFunding Inc., a Dallas-based privately held non-depository (non-bank) financial services company; and Placer Title Co./National Closing Solutions to process, update and secure its first e-closing.
“This is just one of many steps we are taking to improve the customer experience and drive efficient, on-time closings to support our community-based branches and real estate partners across the nation,” says Brenda Usher, chief operating officer for Land Home.
“The demand for speed and certainty, coupled with an increased focus on compliance, is fueling an increasing demand for digital e-mortgages,” adds Michael Cafferky, product development manager for Fannie Mae. “We are eager to continue support of our customers like Land Home in driving their business forward with innovative mortgage solutions.”
The MERS e-registry is the system of record that identifies who is in control of the e-note.
“The model Land Home Financial Services and First Funding are using to register e-notes on the MERS e-registry is a truly collaborative effort,” says Katie Paolangeli, vice president of e-commerce and industry initiatives with MERS. “FirstFunding does the registrations on Land Home’s behalf, which is a model we believe could work well for many other companies and their trading partners. This was an integration effort that really came together to create value for all parties.”
Established in 1988 and headquartered in Concord, Calif., Land Home has more than 80 branch office locations across the nation and continues to expand into local communities.