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Brokerage Tests E-Signatures By Anthony Garritano While using electronic signatures may seem like cutting-edge technology that isn't going to be practical for years to come, brokerages like Fairway Independence Mortgage are piloting e-signature use today. The Sebring, Fla.-based net branch company sees this technology as a way to better the customer experience, get repeat business and go paperless as well. "We're transitioning to a new system right now," explained Brad DeBroux, systems administrator. "We tend to give each of our branches a lot of autonomy, but in January of this year we rolled Ellie Mae's Encompass out with great success. We've been utilizing the system's electronic document management functionality and one branch is piloting e-signatures. "It's all still new to us but we're moving forward with it. We currently recommend Encompass to all of our branches but it is not mandated. However, this is the first time we have ever endorsed a software," he noted. At present Encompass does not include e-signature capabilities, but its EDM functions are being combined with e-signature technology at Fairway. "On each of the transactions the LO will use EDM through encompass and use their own proprietary system to send e-signable docs to the customer while they're on the phone with that customer," pointed out Mr. DeBroux. "We utilize a fax cover sheet with a bar code so things like pay stubs and bank statements can be returned." How successful has the initiative been thus far? "When we have a customer that's comfortable with the technology, it has gone well," answered Mr. DeBroux. "In terms of streamlining the process, it's been very effective. We have people on staff training each other and as long as the processor is well trained there are no problems. We offer six hours of training and six hours of practice broken into four classes. It's just a matter of getting everyone online and proving that it improves customer service because the one thing you can control in this business is the process and service for the customer. "We're trying to look at this as a full solution right now," he continued. "We want to do everything we can to implement a paperless file. We don't want to use fax or e-mail or UPS. It's about changing a mindset really. We can't quantify the ROI in terms of dollars and cents right now because it's very early but it has certainly made us more efficient. "The e-signature technology has been in use since May of this year," noted Mr. DeBroux. "It's working now and is rolled out in our test branch. Moving forward, we're looking at other solutions as well that may be more user friendly. Hopefully e-signature functionality will be available in Encompass at some point. At that point we'll roll it out to every branch." In terms of the legal ramifications, Fairway has researched e-signature usage to ensure a compliant transaction that is binding. "Right now we have an opinion from our operations department stating that everything has gone smoothly," concluded Mr. DeBroux. "The individual branch wanted to use the technology and we're evaluating it for the whole company as we speak. A lot of times new ideas will come to us through individual branches trying something new, which is one reason we don't make any technology mandatory. This is a good idea that we're happy to endorse."

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