It was the first paperless, all-electronic closing in the state.
What’s more, it was only the fifth all-electronic closing in the U.S.
The transaction was a refinance for a property in Winston-Salem and was executed by Hickory-based North State Bank. Upon completion of the closing, Mid America was able to purchase the resulting e-note within one business day after receiving the final loan package.
In a statement issued on May 9, North Carolina Secretary of State Elaine F. Marshall said, “This was our first North Carolina e-closing. It is not our last. We want this to become a regular option for lenders and their customers because of the many advantages e-closing offers versus the slower, traditional paper-based system. We stand ready to work with all other North Carolina lenders to get them up to speed on this. One thing we all noted during this closing was that even though we tried to make it into a real ceremony, it was still so fast and easy that we had a hard time not being finished in just a few moments.”
“Given Mid America’s desire to see full e-closings implemented nationwide, we were happy to play a role in this transaction by serving as the investor for this deal,” says Jeff Bode, owner and CEO of Mid America, in a statement. “We launched our e-correspondent division with the specific intent of converting emerging mortgage bankers to e-closings and purchasing their e-notes. Having also implemented e-closings in our retail division, we’ve seen firsthand how e-closings can reduce errors in the closing process, resulting in lower origination costs and more satisfied borrowers. With origination volume expected to decline this year, now is the time for lenders to get on board with e-closings.”
“As Secretary Marshall noted, e-notarization is an essential component in moving not just mortgages, but all legal filings, into the digital age,” Bode adds. “As such, Mid America has been working closely with the Texas Mortgage Bankers Association to move the Texas Remote Notary bill through the state legislature, and we feel confident that e-notarization will soon become legal in the state of Texas.”
In other company-related news, Mid America announced in late April that it had purchased $2.7 billion in mortgage servicing rights (MSRs) from an unidentified seller. The portfolio includes a number of delinquent Veterans Affairs- and Federal Housing Administration-insured loans.
“Mid America has achieved tremendous success in resolving delinquent government-insured mortgages,” Bode says in a separate release. “By purchasing this portfolio, and another like it, we are providing much-needed liquidity to smaller market players that might otherwise not have an outlet for their distressed servicing.”
The sale was completed at the end of March.
LoanCare, Mid America’s subservicer, was to take possession of the purchased MSRs on May 2.