Technology Solution Helps Speed Up Closings

January 29, 2015

With six months to go until the TILA-RESPA Integrated Disclosure rule takes effect Aug. 1, it’s no secret that many businesses are trying to figure out how they will adapt to the changes it will bring.

Three businesses—Pavaso, Mountain American Credit Union and Bonneville Superior Title Company— collaborated to implement digital closings and have already seen successful results. Since the first closing occurred on Dec. 31, 2014, over half of the closings have occurred in less than 30 minutes. Two of them occurred in under 15 minutes.

“It’s incredible,” said Amy Moser, vice president of mortgage services at Mountain America Credit Union. “We had to verify the times with the escrow officers because we didn’t believe it at first. Digital closings are proving that secure delivery of documents prior to closing is not only convenient to our members, but extremely effective.”

Just a few months ago, Mountain America and Pavaso were introduced when they were paired up as participants in the Consumer Financial Protection Bureau’s e-Closing pilot—a study that is largely observing the effectiveness of technology on consumer education and their participation in the closing process.

“We were excited last year when we learned that we would be working with an industry pioneer like Mountain America,” said Mark McElroy, Pavaso’s president and CEO. “It was also exciting to learn that there are so many title companies surrounding them that are willing to embrace digital closing technologies.”

Pavaso worked with Mountain America and several title companies to prepare for digital closings by integrating two solutions into its digital closing platform. The two solutions, Digital Close and Signing Table, fill critical gaps that previously kept e-closings from wide-spread adoption in the marketplace, Pavaso said in a release.

Digital Close allows all stakeholders of a closing (including the consumer), to collaborate, communicate and complete tasks in a workflow-manner by standardizing the closing process.  Links to educational material (text, brochures or even videos) can be added to any document for review prior to closing. It also tracks the documents and educational material the consumer viewed and acknowledged. In addition to streamlining the process, it’s browser-based delivery works on a wide variety of devices from desktops and laptops to tablets and mobile phones.

Another component to the platform is Pavaso’s Signing Table solution, which is a Windows 8 application that is accessed by everyone at the closing table on a touch-enabled tablet. In addition to the “click-to-sign” functionality that is typical of e-closings, it also provides quality control mechanisms to ensure closings are 100 percent complete in order to reduce errors and improve the quality of the mortgage. In fact, the closer can’t complete the closing until all documents have been viewed and signed, according to Pavaso.

“It’s easy to use, and setting it up was fast,” said Kirk Smith, president of Bonneville Superior Title Company. “The Windows 8 application not only speeds up the entire closing process, but provides a really nice presence to the consumer at the closing table.  And it’s nice to know that the error-prevention built into the solution prevents incomplete closings from happening.”

In addition to aligning with the mission of the CFPB and keeping the consumer-friendly spirit of the TILA-RESPA changes, McElroy said Pavaso’s platform and solutions prove that the modernization of outdated and inefficient processes in the industry can be implemented successfully.

“The ability to stay in our current LOS, seamless workflow with our title partners and securely connecting with our members on a wide variety of devices opens the door to an innovative customer experience with further operational efficiencies,” Moser said.


Contact ALTA at 202-296-3671 or communications@alta.org.

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