A recent study by Finastra reports 81% of consumers say they prefer to sign loan documents electronically. Meanwhile, approximately 81% of borrowers want a face-to-face closing, according to Solidifi’s 2022 Consumer Mortgage Experience Survey.
Today’s consumers are the most tech-forward and experience-minded borrowers yet. eClosing options are now an essential competitive necessity for the sustainability of your business. When applied to eClosings, In-Person Electronic Notarization (IPEN) delivers a borrower experience that maintains the balance between digital innovation and preserving in-person elements of traditional closings.
EscrowTab is the leading IPEN solution, born of the ambition to modernize antiquated, paper-based closing processes, empowering title and settlement companies to close loans the way borrowers expect – technology-driven and eco-friendly. EscrowTab offers efficiency without disruption, as it’s designed to work seamlessly with the processes title agencies, settlement companies, and lenders already have in place.
Title and settlement companies can streamline closing operations by ensuring loans are closed faster than the paper process and in accordance with lender requirements – all the while adding value to the borrower experience with EscrowTab’s convenient eClosing options.
Below are the top five reasons why more title companies are using IPEN-enabled eClosings.
1) Cost Savings
Because IPEN-enabled eClosings involve little or no paper, and (as a result of less paper), present fewer opportunities for human error, title companies will gain substantial cost savings and improved operational efficiencies.
First, consider the cost ramifications of one closing appointment.
The closing package prepared prior to the appointment entails printing upwards of one hundred pages of documents – sometimes more. The expense of paper, ink, and the time it takes to meticulously prepare one closing package is significant. Next, consider how often an error in the closing documents is found, requiring pages, a section, or the entire package to be corrected and reprinted. Best case scenario, a couple of pages require reprinting. Worst case scenario, another hundred-plus pages of an entire closing package require reprinting. In both instances, that’s more money spent on paper and ink, and certainly, more time lost on prep for just one closing. Considering the number of closings scheduled, the potential consequences of human error pose a considerable threat to your resources and operational efficiency.
"With EscrowTab, we can immediately take advantage of labor and cost savings without changing any of our current processes,” says Scott Simonds, Senior Vice President, ET Investments, LLC, speaking to EscrowTab’s immediate savings and zero disruption. “EscrowTab’s value is abundantly clear when our Escrow Officers are closing outside the office or using mobile notaries.”
By removing paper (and paper-processing delays) from the equation, EscrowTab empowers title and settlement companies with the ability to leverage EscrowTab’s IPEN-enabled digital tools proven to reduce costs and risks of human error - without upending quality control processes they already have in place.
2) Reduces errors
Just one mistake in the closing package has the potential to waste a lot of time and effort. Title companies can cut the risk of human error and its potential drain on your resources by making the switch to this economical digital solution.
“IPEN attacks all the title agent pain points by eliminating the need to print or scan documents from multiple devices,” notes Todd Ewing, founder and CEO of Federal Title & Escrow Company in Washington, D.C. “We can apply notary stamps and seals with a click and securely distribute executed documents to respective parties from a single device. It’s far more efficient and helps us deliver an enhanced customer experience.”
EscrowTab’s IPEN-based solution utilizes proprietary Optical Character Recognition (OCR) technology to identify and highlight required fields, ensuring all signatures are captured and all documents are notarized correctly, reducing the number of errors in the closing package.
3) Speed
Time is the most valuable resource we have. The most important way IPEN-enabled eClosings help title companies save time is by expediting their post-close quality control processes.
Post-closing, title companies using EscrowTab gain immediate access to signed and notarized documents, which is faster than the paper closing process – and in accordance with lender guidelines. This enables teams to jumpstart their existing post-close QC processes right away. Some lenders have indicated their goal is to reduce or eliminate their post-close document review process – and EscrowTab helps them get there.
“When the signed and notarized documents are available immediately to provide to the lender, that is a huge bonus,” comments Brad Smith, Settlement Officer/Marketing Representative of True Title, Inc. “The efficiencies we can gain as a title company with that fast delivery are numerous – we can get funding approval quicker – and thus all parties to the transaction are happy – and we can get proceeds and payoffs out quicker. With quicker disbursements, real estate agents will be updated in a timely manner about funding, which saves everyone time.”
EscrowTab’s Ieading IPEN solution is designed to work as close to paper as possible, except better. This includes functionality like allowing for edits to the document in real-time without redrawing the docs, and the ability to clear a single page if a borrower signs in the wrong location.
4) Security
Today’s tech-forward, eco-conscious borrowers want to work with professionals who prioritize the safety of their personal financial information (PFI).
Not only do paper-based closings incur higher costs, lose favor with eco-minded borrowers, and pose several obstacles to a smooth and efficient borrower experience, they also pose a higher security threat.
When broken down for rudimentary comprehension, an outdated, paper-based closing package averaging or exceeding hundreds of individual physical documents per package is no less than a hundred (or more) tangible records of your borrowers’ personal information that you have a professional obligation to protect. Paper records are more susceptible to damage, loss, and risk of identity fraud, in addition to being more expensive to produce, maintain, and store.
In an IPEN eClosing with EscrowTab, the patented solution digitally captures the user’s forensically verifiable handwritten signature on loan documents. The OCR technology automatically identifies signature fields and prepares the document for digital signing.
There’s no need for the notary signing agent to FedEx the original documents as the original authoritative version of the documents are immediately available in the EscrowTab eVault – again, saving the closing teams time and money. Title companies can review and validate documents to ensure there are no mistakes or missing signatures.
Smith explains, “This would be helpful during a funding approval when we have buyers at the table and have to run back, separate the documents, scan them in, and send them to a lender via secure email because it contains personal information … all of that time and hassle would be eliminated with an IPEN closing because the documents can be securely delivered to the lender using EscrowTab.”
Once signed, closing documents are securely stored in EscrowTab’s eVault with restricted access. Documents never leave the security of the eVault and can only be accessed through the EscrowTab account. It is secure, scalable, and the most cost-efficient option available. The EscrowTab eVault can be used to store documents for the life of the loan or securely transferred to trading partners.
5) Relationship management
Borrowers’ simultaneous preferences for digital signing capabilities and in-person relationships prove that even in a society driven by digital convenience, borrowers still want traditional, in-person interactions when purchasing and refinancing their home because of the connection with and trusted guidance from their closing team of industry professionals.
Plus, in-person closings don’t just help the borrower feel supported. Nathan Bossers, President of Boston National Title, elaborates on how in-person closings benefit all the industry professionals involved on the closing team. “Just as a traditional closing does today,” Bossers begins, “an IPEN closing provides the opportunity, for title and mortgage to see each other and their mutual customers (real estate agents and homeowners/borrowers) in a ceremonial celebration at the closing table.”
In-person eClosings honor the relationship management between industry professionals working together on the borrowers’ behalf. Seeing other closing team members from the industry at the closing table alongside the borrowers is a reward in itself and can lead to future leads and transactions. As one large lender said about being present at the closing table, "It's a time to pop the champagne and celebrate.”
It feels safe to assume that what borrowers do not want is to have to choose between the two – tools that modernize the closing process through digital convenience or the support gleaned from in-person closing interactions.
This leaves the onus on title companies, lenders, and other industry leaders to incorporate accessible digital tools and personalized eClosing processes that work together to deliver an exceptional borrower experience offering the right balance of technology and tradition.
Universal Title recognizes how IPEN eClosings serve this balance. "We see IPEN, and the utilization of IPEN by EscrowTab, as an important technological development in the real estate settlement space, particularly in the purchase market,” shares David K. Mason, CEO of Universal Title. “IPEN enables us to realize the efficiencies of a digital transaction, while maintaining the personal touch our customers still desire when closing on a new home."
When title companies partner with EscrowTab to facilitate IPEN-enabled eClosings, borrowers and colleagues on the closing team get the best of both worlds: the efficiency and simplicity of modern eClosing tools, and the in-person connection with closing team members who have the borrower’s best interests in mind.
Lenders are on board as well, as Allison Cole, AVP Mortgage Operations Manager added, "A mortgage is such a big part of a person's life and it's so easy for us to transactionalize it when we begin to dive into the details. At the end of the day, it's about the customer and putting them in their home and this is the perfect way to provide a lot of flexibility and be able to meet the customer where they're at."
For more information on how your title company can offer lenders and borrowers a secure, convenient, digitally-optimized experience with IPEN closings, visit escrowtab.com