DocMagic Inc. continues to drive the development of the e-mortgage, having recently facilitated a paperless loan closing of a mortgage backed by the U.S. Department of Veterans Affairs (VA) by way of its e-sign and e-delivery solutions.
Earlier this year, the company announced that its software had been used to facilitate one of the first paperless e-closings of a mortgage backed by the Federal Housing Administration.
For this paperless closing, DocMagic partnered once again with Mountain America Credit Union, which has a focus on serving the men and women of the armed forces, including those currently serving and our veterans.
DocMagic says this is a significant milestone in the evolution of e-closings, in that it is one of the first VA loans that have been closed electronically since the VA made the announcement that it would begin accepting e-signed loan documents late last year.
‘Until now, few institutions could serve our military personnel effectively, especially those serving overseas,’ says Amy Moser, vice president and mortgage services manager for Mountain America Credit. ‘This loan closing proves that we can accommodate the needs of our armed forces personnel and veterans no matter where in the world they may be.’
As DocMagic officials explain in a press release, although the VA announced that it would start accepting e-signatures on mortgage documents last fall, in conjunction with the VA Home Loan program, uncertainty about whether electronic signatures were valid regarding initial disclosure only, or both initial and final disclosure(s) constrained adoption of the program.
‘The government agencies involved in the home finance industry have now all confirmed that e-sign is an important technology for the future,’ says Tim Anderson, director of e-services for DocMagic. ‘Mountain America Credit Union has led the way again, becoming among the first, if not the first, to go the distance with paperless origination of a VA loan. We congratulate Mountain America for their leadership and for making it easier to do business with them than their paper-based competitors.’
In August, DocMagic announced that it had been selected to participate in the Consumer Financial Protection Bureau's (CFPB) e-closing pilot program, which will explore the viability of developing a standard process for closing mortgages using technology.
Specifically, DocMagic will be working with Mountain America Credit Union and Franklin First Financial in the development and trials of e-closing processes and technology.
In addition, it will be working with title production software provider Pavaso, a spin-off of RamQuest Inc., in developing e-closing technology in connection with Franklin First Financial.