In Part I: Successfully Capturing Equity-Driven Originations, we explored the reasons why conditions are ripe for an increase of equity-driven transactions. While this exhibits growth in the number of potential borrowers, it also presents many challenges for lenders.
In order to find success tapping into this market, lenders need a solution that addresses the many complexities and challenges of equity-driven transactions.
Selecting the Best Way to Close a Loan
Black Knight offers an end-to-end eClosing fulfillment platform – Expedite® Close – that uses intelligent technology and “lights out” processing to help reduce the complexities inherent in mortgage and home equity lending. Expedite Close supports the eClosing process for all loan transaction types with comprehensive automation, workflow and decision making. What is especially unique and impactful about the technology, though, is its ability to leverage embedded logic and client-defined rules to systematically select the best way to close each individual loan transaction – wet sign, hybrid, or fully digital – without lender intervention.
This digital closing software accommodates most potential variations on the closing process. For example, if a borrower chooses to digitally sign documents but does not access them within the appropriate timeframe, Expedite Close will automatically change to a workflow that supports a wet-sign transaction, eliminating document-fulfillment workflow gaps. When a consumer electronically signs documents, the technology determines if all the other factors are in place for a complete digital transaction to occur, such as the county allowing eRecordings and the state permitting eNotarizations.
Expedite Close’s intelligent technology helps reduce friction in the origination process by systematizing and simplifying the decision making complexities of closings. There is no need to change systems or processes midstream, letting the lender focus instead on increasing turn times and improving the consumer’s experience. By taking the complex decision making out of the equation, Expedite Close helps facilitate significant efficiencies, which in turn, reduces costs.
Black Knight conducted a cost-benefit analysis on Expedite Close and found that the software reduces costs anywhere from $40-$100 per transaction, depending on the degree of digitalization. Incremental financial benefits are aligned with each step of the journey, as the lender gets closer to a fully digital transaction.
Even with completely wet-sign transactions, lenders using Expedite Close can still reduce their costs by more than $30 per origination through increased operational efficiencies. But as more and more states accept eNotarization, lenders will already have the technology in place and can move toward a fully digital future that aligns with their unique business goals.
Reducing Fall Out
Factors that contribute to slow turn times in manual closing processes include communication and document exchange between transaction participants. Expedite Close helps overcome these challenges by providing a secure, online portal that manages workflows, includes easy document upload capabilities, and enables all participants to seamlessly interact with each other in the same “workspace.”
In addition, within this workspace, consumers can view their loan status, look at the closing package in advance, e-sign documents at their convenience, and access documents from a mobile device or desktop, helping to improve engagement. The workspace increases transaction visibility and engages consumers earlier in the process, helping to prevent fall out as they can easily see that their loan is moving forward in the process.
Another compelling feature of Expedite Close is its ability to fulfill the closing needs of all transaction participants, with minimal, if any, change or disruption to existing loan closing workflows, making it easy to use and cost-effective from day one.
Increasing Speed to Market
Expedite Close is a win-win for both lenders and consumers. This single solution provides the speed and ease consumers expect, while delivering significant efficiencies to lenders by taking on decision making complexities. Wet sign, hybrid, and full digital closings are all natively supported by Expedite Close. Additionally, lenders can take advantage of the eClosing software no matter how they originate a transaction – whether in a branch, using a third party or via “mail-away” closings.
The key factor in all cases is that Expedite Close provides speed to market. With more transparency into loan status, easier closings, and anytime, anywhere access to documents earlier in the process, consumers directly see the progress of their loan, which helps prevent them from seeking other borrowing opportunities.
Expedite Close supports first mortgages as well as refinances and home equity lending, enabling lenders to take advantage of its unique capabilities for their other real estate-backed loan products, creating even greater efficiencies. In a market with such high amounts of available equity, Expedite Close can help lenders gain greater efficiencies, cost reductions, higher conversion rates and happier consumers – while tapping into more equity-driven business.