Paperless Transaction Continues to Progress with Electronic Closing, Recording Options
February 4, 2010
The ability to close transactions and record documents electronically continues to make strides with the announcements of two companies.
Ingeo Systems, a provider of electronic document recording technology, and Rekon Technologies, a document preparation and management software, recently signed a contract with Cincinnati, Ohio-based Fifth Third Bank to submit mortgage documents electronically into Ingeo’s network of 314 counties nationwide. Meanwhile, eLynx reported that its eClosingNet (eCN) service has gained industry acceptance quicker than anticipated.
Using e-recording technology from Ingeo and Rekon provides Fifth Third Bank with savings in time and costs and ensures the highest levels of security and accuracy, the companies reported. Initially the documents will be satisfaction of mortgage documents, which are signed by the mortgage lender acknowledging that a mortgage has been fully paid. These documents must be recorded by the county recorder.
With this new technology, Fifth Third Bank is saving time and costs while improving customer service. “Fifth Third Bank constantly looks for ways to improve customer service by leveraging new technologies,” said Tim Tierney, senior vice president and Director of Central Operations for Fifth Third Bank. “This product from Rekon Technologies and Ingeo is just another way the bank is moving into the digital age.”
Aurora Marsh, CEO of Rekon Technologies, explained that Rekon is the dominant lien release and reconveyance preparation software for loan servicers, being used by over 80 percent of top residential loan servicers.
Karl Klessig, Ingeo’s CEO, explained that Rekon is one of the top servicing software vendors in the country. Currently, Ingeo lists as customers eight of the top 10 mortgage lenders in the nation plus a majority of the top 30. In addition, Ingeo has 25 submitting business partners and 35 technology partners on the county side. “Bringing aboard Fifth Third Bank represents a major expansion in the paperless recording of mortgage documents,” Klessig said.
Ingeo and Rekon expect to process a significant portion of these mortgage documents for Fifth Third Bank each month. This number will continue to expand as Ingeo continues to add counties to its nationwide network. Of the top 10 most populous counties in the country, Ingeo now has eight in its nationwide network. The other two are in New York where e-recording is not currently allowed.
In October 2009, eCN was launched with a Top 5 U.S. lender/servicer in full production, accounting for more than 20 percent of the nation’s mortgage volume. Since then, the network has attracted more lenders, including a second Top 10 U.S. lender. The platform, which now connects originators to nearly 100,000 closing agents, is now helping to close more than one-third of the industry’s total loan volume.
eCN has made it easier for lenders to reconcile the data and documents used in the loan closing process. Instead of relying on a combination of phone calls, faxes, emails and physical mail, eCN provides direct, secure connections between parties, including the systems in use at the nation’s largest title underwriters. Closing agents are registering on the platform, which provides an agent-centric view by lender, giving them greater control over their own workflows.
Lenders can track closing agent data to ensure the good standing of all agents. Both lenders and title underwriters are benefiting from the eCN platform’s ability to generate and deliver electronic closing protection letters, which is saving both time and money.
“We are pleased that the nation’s leading lenders are seeing the value eCN brings to the industry,” said Sharon Matthews, eLynx president and CEO. “Lenders are working hard to comply with the government’s requirement for more accurate closings and eCN is the solution. The additional data eCN provides is helping our customers mitigate fraud and create a better customer experience.”
Built on eLynx’s expedite platform, eCN connects disparate industry parties — and their supporting systems — in a secure, transparent manner. The result is a single view into regulatory compliance, a streamlined process, reduced risk of errors and fraud, and improved customer service.
Besides settlement agent management and score carding, lenders on the eCN network can take advantage of the connections eCN creates among closing partners to monitor loan progress and performance, facilitate the closing protection letter, collaborate with partners to reconcile HUD statements online, receive notification of potential multi-lien fraud and provide seamless access to recording services.