Paperless Transactions, the Future of the Real Estate Industry
September 30, 20140
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According to the September issue of Title News, there has been a renewed push for paperless transactions to improve the closing process. There has been a increase of efforts by both Fannie Mae and Freddie Mac to standardize the loan process and as of August 1st, 2015 the Consumer Financial Protection Bureau's mortgage disclosures will help stress the need for the electronic process. With all of the parties that are involved in the transaction electronic mortgage processes seem to be the Holy Grail for the real estate industry. Or is it? Growing up in the age where I have lived with and without technology, has made this process easier for me to accept and to wonder why it has taken so long to get to, in an almost paperless world! It also provokes another thought in my mind which goes back to the days before technology, when the basis of any transaction relied heavily on the relationships you built for you business.
The CFPB is also launching an electronic e-closing feature which should save time and money for all parties. The project will create insight for the organization on ways to improve the experience for the consumers. The idea of this process is to reduce cost, increase in efficiency, fairness to the consumer and better compliance with the regulations that are in place. If this is the case it could have an effect on smaller local title companies. With large title companies able to utilize an e-closing process it could eliminate the smaller company's abilities to keep up with the demand. The question then goes back to human relationship or a computerized streamlined process. I for one, still believe in people and there ability to connect with their buyers and sellers even at the closing table. Having a solid relationship with your title company is crucial in the process and makes for a smooth transaction for all parties. I also believe that the electronic process is a very positive step for the industry. Can we have both or do we lose one of the last personalized steps left on the transaction?
Go to www.alta.org to read the entire article.