|
Special Reports
Electronic Documents
Partnership Thinks E-Docs Help Lock Borrowers
Helping originators increase pull through.
By Anthony Garritano
As brokers scramble to get more business, electronic documents can help differentiate
the innovators from the followers and result in more pull-through for tech-savvy institutions
Getting the borrower off the street as quickly as possible before they go to a competitor is important in this
down market. A partnership between Desert Document Services and NYLX helps lenders increase their pull-through.
As part of the agreement, point-of-sale vendor NYLX will integrate DesertDocs compliant state-specific Initial
Disclosure packages into its online loan-pricing engine, making these RESPA-required disclosures available to originators
at the push of a button. The partnership was formulated to automate this process and make it more transparent to
the borrower at the same time. "We initiated this partnership because we support a lot of different types
of originators in different parts of the channel," said John Alexander, NYLX Inc. president. "One of
the issues that floats up to us is making sure the appropriate disclosures are provided at the point-of-sale.
"Based on my previous relationship with DesertDocs, I approached them and
told Ruth Thompson that I have a need for this integration. We needed to make sure that all the RESPA requirements
were met at the point-of-sale with the disclosures. With DesertDocs' technical staff, it was easy to put together."
"We're honored to have NYLX invite us to their table," added Ruth Thompson,
president and CEO of DesertDocs. "We started in the pre-disclosure business. John actually worked with one
of our competitors so we were doubly honored that he wanted to do this with us.
"Usually when you talk more requirements, it means higher cost and more touches.
We've achieved the opposite," she noted. "We use the secured Web post, which is tried and true. We've
even gotten requests to add investor-specific details. The answer to those requests is, yes.
"Together we want to walk before we run, but moving into a full e-world is
scheduled for 2007," explained Ms. Thompson. "We'll e-package to the consumer and the investor. In this
market the pricing engine has become very important. Marrying the two concepts, pricing and automated disclosures,
was ideal."
"We're fortunate to have the data needed to do accurate pricing and eligibility,"
said Mr. Alexander. "Customers continue to realize ROI that is achieved and not just estimated from this technology.
"With our economies we can offer a competitive price point. We want to go
beyond software to provide a solution for our customer's pain points," he said. "As HUD and others try
to shrink those estimates, we provide a way for the industry to collectively address those concerns.
"Specifically, through best execution we give the lender all the needed tools
so they can make more money on each loan. The product is also more consistent so the investors that buy the products
are very happy as well," Mr. Alexander said.
"While staying out of RESPA reform regulations is good, the lender also has
to insure that they're touching that loan file less as well," added Ms. Thompson. "Lenders are getting
more strategic about how many people have to be involved in the loan file and why.
"Our investors and lenders want to open up their correspondent channel and
minimize risk. This is a win-win for them," she said. "This way, they can get a borrower commitment before
the competitor can get at them. Also, correspondents don't have as much time to work a loan so this benefits them
too. They want to get it out of their shop as quickly as possible to get funding."
Right now around 40 lenders are actively using the service. As new requirements come down that number will go up
quite a bit, according to Mr. Alexander. "Lenders are pushing more to the point-of-sale, but they don't want
to expose themselves to risk," he pointed out. "We ensure the disclosure will be out there and they have
an audit trail to see that activity at the same time."
|
