He said the use of outdated systems, such as white papers with wet signatures, has become a lengthy, drawn-out affair for both consumers and mortgage professionals.
“There was often what we call a hybrid, so many documents had to be signed electronically, but the promissory note and the document had to be wet signed,” he said. “It has been very fragmented since the initial disclosure of the information that the lender must provide to the consumer when it accepts the application.”
He was critical of software vendors who provided only one piece of the digital puzzle. “(They are) very good salespeople and they are very convincing,” he said.
“But the unintended consequence of this is that you have a consumer and of course a lender who has multiple platforms that they only have to deal with in order to close one transaction,” he added.
“It lowers standards to allow these incapable parties to continue playing, which is a step backward in terms of the industry.”