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Special Reports
Electronic Documents
Reunion Takes Steps toward E-Mortgage Adoption
LOs 'can directly update... loan files.'
By Anthony Garritano
As more and more lenders look to streamline their processes and create more internal
efficiencies, adopting electronic mortgage processes makes sense. Reunion Mortgage here has taken the first step
in moving in this direction by outsourcing its e-mortgage effort to DocuTech.
Specifically, DocuTech Corp., a provider of compliance services and documentation
technology for the mortgage industry, announced at MBA's 94th Annual Convention & Expo that Reunion Mortgage
here implemented DocuTech's ConformX with SMART Docs, a Web-based interface that simplifies the process of preparing,
processing and closing paperless mortgages using Category One SMART Document e-notes.
According to company officials, Reunion Mortgage chose DocuTech because its MISMO-approved
SMART Docs are an important part of the paperless mortgage process. Category One SMART Document e-notes are designed
to deliver accurate, real-time loan data in a flexible electronic file that streamlines the delivery-to-investor
process. At present a Category One SMART Doc is accepted by both government sponsored enterprises on the secondary
market.
A SMART Doc is an electronic document that binds together the data, page view
and signatures into a single electronic file. "SMART" is an acronym for Securable, Manageable, Archivable,
Retrievable, and Transferable.
The SMART Doc specification is a general-purpose, flexible technology that can
be used to implement any paper document or form in electronic format. E-mortgages drove the creation of the SMART
Document and the SMART Doc Implementation Guide, both put out by the Mortgage Industry Standards Maintenance Organization.
The mission of MISMO is to develop freely available XML (eXtensible Markup Language)
data standards, e-mortgage specifications and related standards, while operating in an open, transparent and vendor-neutral
environment. MISMO standards allow lenders to speak the same technological language with the rest of the industry.
MISMO has published specifications that support underwriting, real estate services
(mortgage insurance application, credit reporting, flood and title), appraisal, loan delivery, secondary market,
product and pricing, and servicing process areas. The specifications are freely available for industry implementation
via the MISMO website (www.mismo.org).
"Reunion Mortgage specializes in paperless mortgages that speed up the loan
closing process and save both time and expense," said Diana Ringer, vice president of government lending at
Reunion Mortgage. "DocuTech's ConformX with SMART Docs integrates seamlessly into our existing systems.
"Loan officers can directly update their loan files, and DocuTech ensures
accuracy and compliance with built-in quality controls," she continued. "E-notes allow us to accelerate
the funding process, and offer greater customer service."
ConformX also gives Reunion Mortgage a Web-based interface that can turn Internet
connections into a paperless loan origination or closing office. The company can print, e-mail, or post loan documents
online from any remote connection location. "As lenders look to streamline the loan process - minimizing internal
resources and maximizing borrower satisfaction - they are transitioning to paperless mortgages," said Monte
Larsen, chief marketing officer at DocuTech.
"Using DocuTech's SMART Docs approach, a loan can be underwritten and closed
in 40 minutes, compared to the multiple day process required by faxing papers. Due to its Web-based capabilities,
ConformX helps Reunion Mortgage accelerate the loan process enabling an increase in loan production."
Reunion Mortgage is a residential mortgage lender. Reunion Mortgage has seven
wholesale branches and a correspondent division. The company is licensed in 32 states.
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