E-note adoption is often seen as a final hurdle in achieving a true end-to-end e-mortgage.
In a move that will enable mortgage bankers to operate warehouse lines with greater efficiency, Flagstar Bank is now accepting e-notes to fund its warehouse lending transactions.
“This is great news for our customers,” says Joe Lathrop, head of warehouse lending for Flagstar, in a release. “They’ll be able to clear their warehouse lines faster, have more accuracy and security, and best of all, originate more loans without increasing their credit line.”
Once the e-warehouse line is requested and approved, an e-note is instantly delivered to Flagstar’s e-vault and registered with MERS.
It all happens in minutes instead of the days it takes for paper transactions, Flagstar claims.
And because it’s all done electronically, there’s no concern about lost or misdirected documents.
“It’s another service we can offer our customers,” Lathrop says. “We’re still in the paper business and happy to accommodate customers who want to go that route, but the industry is moving towards paperless, and we want to be in the forefront.”