ABOUT US EDITOR'S NOTE Dodd Frank Update is a production of October Research, LLC specializing in business news Technology, the pandemic, and you and analysis for the financial services industry and is published 12 times a year. Dear Readers,

Contact information: This year’s technology report highlights the acceleration of technology October Research, LLC ATTN: Dodd Frank Update in the industry, whether it be Quicken Loans ‘leading the pack’ in 3046 Brecksville Road, Suite D digitizing the entire mortgage process, Roostify partnering with Richfield, OH 44286 Google Cloud’s Lending DocAI to analyze and extract data from Tel: (330) 659-6101 documents, the increasing adoption of electronic promissory notes, Fax: (330) 659-6102 and the demand for remote online notarization (RON), one thing is certain: 2020 has been a leap into the future for the mortgage and CEO & Publisher housing industries. Erica Meyer

Editorial & Publishing Technology is not just about the loan processes. With the increase Editorial Director Mark Lowery in demand this year, companies have also been looking for ways to streamline anything in regard to running their businesses. This gives Editors other industry-support companies a chance to show what they can Elizabeth Childers, Dodd Frank Update Andrea Golby, The Legal Description do. One company offers artificial intelligence solutions to automate Mike Holzheimer, Valuation Review employee onboarding. Capacity’s platform will learn your company’s Tracey Read, RESPA News policies, procedures and training materials to provide a self-service Seminars and Webinars resource for new employees. Tara Quinn, Director eCommerce Basically, it helps your new teammates quickly get the answers they Rick Harris, eCommerce Director need to provide the best service to your customers. For many in the Scott Honeycutt, Graphic Design industry still working from home, this would be a valuable tool when Sales & Marketing face-to-face training is difficult. Moveworks is another company Jeff Dashiell, Senior Account Manager Jake Dean, Sales Support providing similar services, though appears to have more of an IT Alissa Shively, Marketing Manager slant.

Circulation / Customer Service Kathy Hurley This year has been one for the history books. We hope this year’s Mortgage Technology Report provides new ideas and information Business Offices Sam Warwar, Esq. to help improve your business practices. Though COVID-19 brought these changes, it is likely these technological innovations will be here long after the pandemic is over. TO SUBSCRIBE, PLEASE GO TO OctoberStore.com Best regards, Copyright © 1999-2020 October Research, LLC All Rights Reserved.

Any copying or republication without the express written or verbal consent of the publisher is a violation of federal copyright laws and the publisher will enforce its rights in federal court. The publisher Elizabeth C. Childers, Esq. offers a $500 reward for information proving a federal Editor copyright violation with regard to this publication. To obtain permission to redistribute material, obtain reprints [email protected] or to report a violation of federal copyright laws, please call 330-659-6101, or email: [email protected]. DEFAULT SERVICES: PREPARING FOR 2O21 In today’s environment, there are many unknowns and a lot of speculation around what 2021 has in store for our industry. NTC is staying one-step ahead and is prepared to assist by continuing to expand and improve our default services. We will be ready for whatever turn the mortgage industry takes. Call us to discuss how we can help you.

- TITLE POLICY CORRECTIVE, RETRIEVAL OR REPLACEMENT - DOCUMENT RETRIEVAL/COUNTY RESEARCH - CURRENT OWNER SEARCH - ASSIGNMENT VERIFICATION REPORT (AVR) - CHAIN OF TITLE BINDER FOR NOTES AND ENDORSEMENTS - ASSIGNMENTS OF MORTGAGES

® CALL FOR MORE INFO 800.346.9152 x310 CONTENTS 4 Ready, set, GO! 6 Making it work remotely with RON 8 The leader of the pack 10 The latest mortgage-technology advancements 14 Appraisal flexibilities helped sustain market momentum

Ready, set, GO! Electronic closings have exploded since the beginning of extended digitization into the closing process and through the year, and the trend of digital transactions has only been the full lifecycle management of mortgage loan documents, accelerated by the current COVID-19 crisis. Thanks to these including technology-enabled digital financial asset technological advances, the housing market is experiencing creation (the eNote) and monetization, enabling faster a banner year, a juxtaposition to the rest of the economy. funding, better loan quality, and increased post-execution operational and capital efficiency.” But this technology did not appear overnight. The foundations for these tools Moir said the company have been in the works observed four key principles for years, being laid by to foster mortgage digital companies such as MERS, adoption. Its mission: to eOriginal, DocMagic, and make digital mortgages DocuTech, so that eNotes “eOriginal and other technology simple. The first principle (electronic promissory notes) providers in the industry have not was open versus closed and eVaults were able to only helped foster digital mortgage technology. build a structure likely to last adoption for originators, but for through the pandemic and “This enables mortgage beyond. the entire ecosystem: originators, originators to continue to warehouse lenders, custodians, work with their preferred One of the barriers to digital servicers and GSEs. ecosystem of mortgage and remote execution partners: borrower portals, of documents has been Simon Moir, chief product officer, eOriginal LOS [loan origination the ability to verify the system], and doc prep authenticity and chain providers, etc., as they move of custody required by ” from phase one to phase two regulations. According to its of digital mortgage adoption,” website, eOriginal “is the only he explained. company to provide Digital Asset Certainty — the assurance that digital loans meet and maintain the highest level of The second principle was to enable choice. “For example, legal enforceability and compliance.” with eOriginal, originators have the choice to leverage our fully integrated ClosingCenter solution that not only Simon Moir, chief product officer at eOriginal, said the enables paper, digital or hybrid closings, but simplifies company implemented its system in two phases. eNote creation, eNote management, and the monetization of eNote assets to the secondary market via one simplified “Phase one of digital adoption in the mortgage industry solution,” Moir said. “Or they have the ability to leverage focused on the application and approval process to improve discrete components of our solution to complement other the borrower experience,” Moir said. “Phase two has provider offerings to enable their digital mortgage strategy.”

4 OctoberResearch.com The third principle was to enable digital ecosystem liquidity. of liquidity.” These pillars are the GSEs, Ginnie Mae, commercial warehouse lenders, the Federal Home Loan “eOriginal and other technology providers in the industry Banks (FHL bank system), and private capital markets have not only helped foster digital mortgage adoption funders. Moir said the GSEs have essentially established for originators, but for the entire ecosystem: originators, the market for eNotes, but breaking into the other liquidity warehouse lenders, custodians, servicers and GSEs,” he sources is still a challenge, and is critical to continuing said. “This fuels transformational speed and capital the trend. efficiency by accelerating the rate at which digital financial assets/eNotes are created, stored, transferred and sold into “Like most aspects of the digital mortgage, eNote adoption the secondary market.” is a cyclical process: as lenders and investors use, accept and purchase eNotes, they become more standard, and as The final principle, Moir said, was making it simple to get eNotes become more standard, more lenders and investors started. “For example, eOriginal enables Rapid Deployment use, accept and purchase eNotes,” he said. Solutions (RDS) — pre-configured solutions based on industry best practices to enable quick time to value and a In an effort to bolster continued acceptance and enable technology foundation for growth and scale,” he said. Ginnie Mae and the FHL Bank system to adopt eNotes, MERS launched in 2019 the ‘secured party’ and ‘secured eOriginal has been working with MERSCORP Holdings, party delgatee’ fields in the eRegistry. MERSCORP is also the owner and operator of MERS [Mortgage Electronic working with the “five pillars” to increase liquidity for Registration System] eRegistry, to power the latter registered eNotes by establishing protocols to manage company’s eNote Solutions, which enables the creation, risk, evidence collateral positions, and collaborate with execution, registration and management of eNotes to important stakeholders to reduce transaction “friction.” mortgage originators across the industry. “To achieve a situation where eNotes serve as fungible MERS eRegistry was developed by MERCORP in evidence underpinning the mortgage loan asset, all cooperation multiple mortgage industry stakeholders five pillars of liquidity must be actively engaged in the to be the industry’s system of record for “identifying collateralized lending, funding, investing and trading of the controller (holder) and location (custodian) of the eNotes,” Moir said. “This also helps drive further adoption authoritative copy of an eNote, or who in the traditional by lenders, who require these financing options to drive paper world of mortgages, is the holder of the original note business.” with the rights to enforce.” The goal of the eRegistry is to give consumers, lenders, and investors confidence in the According to Moir, the amount of eNotes registered has authenticity of electronic copies verified by an independent been steady since 2004, adding up the 719,240 total eNotes third party, so they can move forward in the digital process. that have been registered. But the numbers have exploded this year. “A national eNote registry was part of the industry’s response to develop systems that can rely upon the It took 14 years to generate 40 percent of the total Uniform Electronic Transactions Act (UETA) and the eNote volume, Moir said. The other 60 percent has federal Electronic Signatures in Global and National been registered in the last three years, showing a rapid Commerce Act (E-SIGN) to establish legal effectiveness expansion in demand for this technology. of electronic notes for mortgage loans,” Moir said. “This digitization has paved the way the industry to continue to The 2020 increase, however, has been staggering: “For innovate to speed processes, offer efficiencies and ensure 2020, the starting monthly volume in January 2020 was verified and transparent information sharing.” 15,271,” Moir said. “The monthly registered eNote volume in September was 51,234 — a 235 percent monthly increase Moir said though the use of eNotes has grown rapidly, in registered eNotes from January’s volume. With the widespread adoption is contingent on several factors. onset of COVID-19, digital adoption in mortgage is clearly One of these is adoption by what he calls the “five pillars on the rise and here to stay.”

DoddFrankUpdate.com 5 Making it work remotely with RON “I’m working from home. How about you?” prepared for that increased demand and had experience in quickly preparing for increased demand,” Triola continued. Chances are the answer is yes, for at least some of the “When Florida went live with RON, we handled a 100 percent time. It is a part of the new, post-pandemic world, along increase in month-over-month transactions during Q1 2020 with cats hijacking zoom meetings, children making guest without a problem. When the pandemic hit and states began appearances on conference calls, and all those devices to pass emergency legislation authorizing RON, we were stressing out the home wi-fi. able to manage a 300 percent increase in demand nearly overnight.” Although this trend was slowly creeping into the normal work schedule before the pandemic, the COVID-19 crisis Triola said the company saw a 56 percent increase in the accelerated the move from the office to the home-office. The demand in September 2020 compared to the same time last housing and mortgage industries were also affected by this year. In addition, he said, the company had a 1,900 percent move, and as a result were presented with unique challenges increase in real estate closings in the same time period once to digitize a previously in-person business. there was an increased allowance for RON.

NotaryCam is one of those businesses that have stepped into In an effort to keep the housing market and the economy the fore this year. The company afloat while the country was has been providing electronic effectively shut down, nearly all notarizations nationwide since states passed at least a temporary 2012 and has been working When the pandemic hit and RON measure this year. to promote remote online “ states began to pass emergency notarization (RON). “[C]urrently, 48 states and legislation authorizing RON, Washington, D.C. authorize “Every party to the transaction we were able to manage a 300 remote e-notarization either needed to appear in the same percent increase in demand through an existing law, or ‘room’. While keeping it simple, nearly overnight. emergency action,” Triola said. we needed to develop the “These emergency actions were most sophisticated system and able to be put in place so quickly Rick Triola, founder and CEO, offer the highest-level security due to the recommended uniform NotaryCam possible,” NotaryCam stated on language I helped draft alongside their website. “We also needed the Uniform Law Commission 100 percent assurance that the ” (ULC).” signer and notary were who they said they were, and needed solid, secure, and memorialized evidence to go to court When authorizing RON, some states decided to adopt with, versus the ‘he said-she said’ type of argument that is so remote ink-signed notarization (RIN) as their legal form prevalent today. of remote notarization. RIN is different than RON, in that the signer completes a “wet signature” — ink on paper — “In addition, absolute verification as to the originality and while the notary witnesses the signing over live real-time integrity of the document, guaranteeing that there would be video, usually Zoom, Skype, or a similar program. No eSign no manipulation once electronically signed, was paramount technology is required for RIN because the actual signatures and our highest priority.” are not electronic.

Rick Triola, the founder and CEO of the company, said it The signer then faxes or electronically transmits the paper was already preparing for an increase in demand when the document to the notary during the video conference, the pandemic began, because Florida, along with 23 other states, notary prints out the document, completes the notarial had passed RON legislation to start at the beginning of certificate with pen and ink and attaches a physical seal, then 2020. He said NotaryCam had predicted Florida specifically faxes or electronically transmits the notarized document would cause an increase because of the high concentration back to the signer during the same video conference. of international and remote buyers and sellers, vacation and second home sales, and a senior population. Compare this to RON, where the customer generally signs an electronic document with an electronic signature, and “Because we were anticipating an increase in demand the notary signs the notarial certificate with an electronic leading up to Florida’s Jan. 1 RON start date, we had already signature as well and affixes an electronic seal.

6 OctoberResearch.com “Luckily, our team is full of great people who were able to “Due to limited opportunities for face-to-face interactions quickly adapt our existing technology and develop a platform caused by COVID-19, the ability to use technology to for RIN transactions at NotaryCam, ensuring homebuyers complete financial transactions has become a major priority and real estate professionals in every state could utilize the for the real estate finance industry,” the MBA stated. “RON NotaryCam platform to complete their closing ceremony in has become a powerful tool that will allow our industry to accordance with their individual state’s permanent and/or continue serving consumers during the health crisis and temporary authorization,” Triola said. beyond.”

Triola said the ideal step going forward would be federal According to the MBA, of the 28 states that have legislation authorizing RON nationwide, but he didn’t enacted permanent RON laws, 26 have adopted think it would happen any time soon with the presidential language substantially similar to the MBA/ALTA model. election and COVID-19 taking precedence for legislators at Pennsylvania’s language is also based on the MBA/ALTA the moment. Because of this, he said, it is up to the states to model, as well as the Revised Uniform Law on Notarial Acts. adopt RON legislation. MISMO, the MBA’s standards organization, has developed “Twenty-seven states have adopted permanent RON RON standards to promote consistency across the industry legislation, with Hawaii set to be the 28th on Jan. 1, 2021,” practices and state regulations. Triola said. “Moving forward, the remaining states need to pass permanent RON legislation.” “MISMO RON standards include credential analysis, borrower identification, capturing and maintaining a Since speaking with Triola, Pennsylvania has also passed recording of the notary process electronically, audio and RON legislation, and is currently waiting for Governor Tom video requirements, record storage, and audit trails,” Wolf to sign it into law. If Wolf does so, Pennsylvania will be MISMO’s website stated. the 29th state. MISMO also offers a certification to assess RON providers’ Many states already had RON legislation drafted before the compliance with its standards. According to MISMO, this COVID-19 crisis, he explained, and it just needs to be passed. offers many benefits, including: For the states that had not already begun writing RON legislation, Triola recommended they look at the emergency • “Providing clarity and transparency on which RON language used by the states, the ULC suggested language, providers comply with MISMO RON standards. Mortgage Industry Standards Maintenance Organization • Reducing or potentially eliminating the resource burden (MISMO) RON standards, and other states’ enacted of duplicative assessment, certification, and approval language. processes of RON providers by individual mortgage industry participants. “This pandemic put the spotlight on RON in the mortgage • Enabling a consistent assessment process of RON and real estate industries,” Triola said. “For states that had providers; decreasing the risk of RON providers’ non- not already embraced RON, they were able to see first-hand compliance with the MISMO RON standards. the convenience and benefits of RON transactions.” • Facilitating earlier identification and remediation of issues to mitigate their impact. The Mortgage Bankers Association (MBA) and the American • Supporting the integrity and scalability of RON-enabled Land Title Association (ALTA) collaborated in 2017 to digital mortgage closings across the mortgage ecosystem.” develop model language for RON legislation for any state looking to adopt the process. The model was developed by As of now, there are five RON providers with MISMO an ad hoc taskforce of the organizations’ members and was certification, and four in the process of being certified. open for comments by MBA’s legal issues and regulatory NotaryCam is one of the providers currently in the process. compliance committee, MBA’s state legislative and Current certified providers are eNotaryLog, Heracles regulatory committee, and various ALTA committees. Holding, LLC, Notarize, Pavaso, and Signix.

DoddFrankUpdate.com 7 The leader of the pack Quicken Loans has been among the most aggressive lenders Virginia,” he said. “By April 2019, we had a form of eClosing in the digital closing and transaction space. available in all 50 states and Amrock digitally closed 96 percent of all eNotes that were signed and registered in The company has been a leader in handling remote and MERS [Mortgage Electronic Registration System] that electronically notarized transactions. The company’s early year.” belief that the homebuying process would benefit from a heavy dose of innovation has paid off handsomely. The success of Quicken Loans, especially during the second quarter, would not have been possible without How much so? Quicken Loans generated second-quarter the technology investments Rocket Companies made in origination volume of $72.3 billion, up 126 percent Amrock. Rocket Companies is the parent of Quicken Loans compared with the $32 billion originated in 2019. and Amrock.

In total, the company’s second-quarter profits reached “Our investments in technology and process at Amrock $3.46 billion, up 3,458 percent compared with the $97 paid off in the second quarter as the business was able to million in the first quarter and $4 billion more than the $54 scale up and meet the increased demand for mortgages and million loss posted in the second quarter of 2019. the related title insurance and settlement services,” Chief Financial Officer Julie Booth said. For the quarter, Quicken Loans reported total revenue of $5 billion, up 437 percent compared Booth said Amrock processed with $938 million for the second more than 240,000 settlement quarter of 2019. transactions during the second “ quarter of 2020, up 45 percent Amrock, the company’s title “We recognized early on as compared to the first quarter insurance and settlement services that digital closings enable of 2020, and up 171 percent from business, helped drive the a streamlined, simplified the second quarter of 2019. company’s success. experience for all parties “Amrock continues to be the What made Quicken Loans and involved.” nation’s leading eClosing Amrock take the leap toward provider and is always testing Brian Hughes, CEO, Amrock digital closing so early, and how new ideas to improve our has its expertise help pay off as processes,” Hughes said. “We more borrowers are looking to have developed a platform which eClosing and remote transactions? reduces paper usage, enhances ” quality, streamlines workflows Simplifying the process through and creates efficiencies to provide a higher-quality closing innovation experience for all.” And Amrock has grown as Rocket Companies has thrived. Amrock said it always has focused on innovating to simplify the mortgage-closing experience. As the mortgage According to a Securities and Exchange Commission filing origination process was being revolutionized by Amrock’s earlier this year, Amrock in 2019 conducted 444,900 sister company, Rocket Mortgage, Amrock focused on settlement transactions, bringing in $558.6 million in gross digitizing the closing so mortgages could close the same revenue. That was a 41 percent increase in transactions way they started. from 315,300 in 2018. It was a 37 percent increase in gross revenues from $407.1 million in 2018. In 2017, Amrock “We recognized early on that digital closings enable totaled 388,500 transactions and $480.8 million in revenue. a streamlined, simplified experience for all parties involved,” Amrock CEO Brian Hughes said. “We started “[Amrock] complements our mortgage origination platform transitioning to digital mortgage closings in 2017 by by providing services that enhance our ability to close loans building systems which would scale effectively and allow us as efficiently as possible,” the filing stated. “Our technology to complete digital closings nationwide.” helps to streamline and clarify the real estate experience across the appraisal, title and closing process which further “We completed our first hybrid closing in Michigan that year enables the speed of our platform. In 2019 our average — as well as our first remote online notarization (RON) in

8 OctoberResearch.com DataTrace TaxSource Tax status reporting made easy

The DataTrace Difference • 7 billion document images • 545+ Title Plants • Full coverage of U.S. Housing Stock Data

From the nation’s most trusted source of title data and automation for over 50 years Nationwide Coverage & Expertise Nationwide property tax records, supported by the strongest network of regional specialists in Introducing DataTrace® the industry

Trusted, Reliable Tax Record Property tax reporting that delivers full national coverage Comprehensive tax records combining essential assessor, with the most current tax status and rapid results built on the tax agency and tax bill data that latest technology and data resources. is validated for tax currency and data integrity DataTrace TaxSource provides a single solution to all your tax processing needs. Eliminate the challenges of managing your in-house tax searches or multiple regional vendors. Seamless System Our robust integration provides the tax data you need, Integration the way you need it - directly to your production system. Tax status data integrated through robust APIs to title With TaxSource, trusted, validated tax status information is production systems delivered through an efficient, nationwide network of data and expertise.

TaxSource – Tax status reporting made easy Single Source Solution Single source access provides a standardized response from any jurisdiction, improving process efficiencies DataTraceTitle.com/TaxSourceTR 800.221.2056

© 2020 Data Trace Information Services LLC. All rights reserved. Data Trace is a registered trademark of Data Trace Information Services LLC. Data Trace makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. DTC: 06182020 loan closed within approximately 32 days or less after the signing agent. The eClosing was completed for a Quicken company’s receipt of client documents.” Loans team member living in Asheville.

“Amrock maintains a nationwide network of independent A pandemic push appraisers as well as internal appraisers and support teams to manage the ordering, fulfillment, logistics and tracking The COVID-19 pandemic certainly accelerated the adoption of appraisals,” the filing stated. “Amrock uses various of digital closing throughout the industry. However, technologies to aid in the review of appraisal assignments Quicken Loans was in a unique position to capitalize on the and values to detect fraud and/or errors.” refinance flurry spurred by low interest rates.

Changing consumer expectations “The COVID-19 pandemic has served as a significant catalyst — driving the shift to further digitize the mortgage Hughes said consumers now are more educated about experience,” Hughes said. “Ensuring the health and safety digital closings and are more motivated than ever to seek of all parties involved in a transaction has been a critical alternatives to the traditional pen-and-paper process. focus for us at Amrock and is something we were more than prepared to handle as early adopters and innovators in this “Amrock is meeting this demand by providing a range of space. digital closing options that match the needs of lenders and consumers alike,” he said. “Our investment in scalable “While eClosing eligibility varies depending on state technology has enabled us to grow our volume and retain legislation, as well as other variables, we were prepared very high market share to meet the unprecedented demand with different digital closing options that feature a variety this year. of in-person and digital interactions,” he continued. “This includes RON, in-person electronic notarization, and “We continue to pave the way for digital closing adoption hybrid eClosings.” in all 50 states so consumers everywhere can easily access this technology and secure their home loan with speed, Hughes said Amrock was ready for the surge in volume in certainty and convenience,” Hughes added. the wake of COVID-19, thanks to its scalable system.

This summer, Quicken Loans and Amrock completed North “And we continue to focus on growing our digital footprint Carolina’s first RON mortgage closing. In that case, Amrock to deliver even more solutions in the future and make them partnered with Brady & Kosofsky, P.A., which served as the available to more consumers across the country,” Hughes said. The latest mortgage-technology advancements

Through new products, partnerships and integrations, capabilities in AI and ML to decrease the time it takes companies in the mortgage technology space are to process documents, increase accuracy, and reduce revolutionizing the process of approving mortgage costs, helping lenders provide their clients with a better applications, closing them electronically, and routing them experience. to investors. “The home lending industry is still early in transitioning As others in the real estate space marvel at technology from traditional, manual processes to digitally-enabled and advancements, put forth by mortgage-technology automated processes, and we believe that transformation companies, there are a constant stream of products will happen much more quickly with the power of AI, and designed to make the process more efficient. if you are going to do AI, you’ve got to go to Google Cloud,” Roostify founder and CEO Rajesh Bhat said. Roostify recently announced a strategic partnership with Google Cloud to apply Google Cloud artificial intelligence Roostify stated these new capabilities include analyzing, (AI) and machine learning (ML) capabilities to help lenders categorizing, and extracting data from documents process mortgage applications faster and more effectively. submitted throughout the lending process and a streamlined user experience leveraging this data for Roostify will integrate Google Cloud’s new Lending DocAI consumers and loan teams. solution into its leading digital lending platform, leveraging

10 OctoberResearch.com SimpleNexus recently launched a return on investment decisions for themselves and their families,” Rocket (ROI) calculator which enables mortgage lenders to Mortgage Chief Revenue Officer Tim Birkmeier said. estimate their ROI in SimpleNexus by modeling the digital mortgage platform’s impacts on loan production revenue “These are the consumers who will realize they could free and operational expenses. up much needed monthly cash flow with a refinance to today’s low mortgage rates. Partnering with Intuit to offer The SimpleNexus ROI Calculator draws on the results the Rocket Mortgage experience right inside the Mint app of a third-party ROI study conducted by independent is a monumental step for our Rocket Mortgage-as-a-service consulting and advisory firm MarketWise Advisors (MWA). technology and, more importantly, a great opportunity to The compiled results of MWA’s analysis were baselined to vastly improve users’ finances.” develop a pro-forma tool for calculating lenders’ expected ROI from SimpleNexus over time. DocMagic recently partnered with Simplifile to deliver new process efficiencies that further digitize the closing “We are so confident in our ability to deliver superior value process, including post-closing automation. The integration that we have launched a self-service tool that quantifies between DocMagic’s Total eClose and Simplifile’s the sales and revenue benefits SimpleNexus can deliver Collaboration and Post Closing services includes access to based on the size and productivity of an organization,” Simplifile’s eEligibility data for eNotarization acceptance. SimpleNexus co-founder Ben Miller said. “Just plug in a few numbers and see how SimpleNexus lines up.” Loan closings done through DocMagic’s Total eClose platform now can be automatically In October, financial routed to the settlement agent empowerment app Mint by Intuit through Simplifile for electronic Inc. and Rocket Companies closing coordination. For too long, the refinance announced a first-of-its kind “ partnership in which Rocket process has been an “This integration further Mortgage now is integrated into annoyingly tedious and streamlines the post-closing the Mint app via API to create a overwhelming experience for process by extending the eClosing simplified refinance experience all of us to find the right lender process to include county for homeowners. recordings,” DocMagic President and loan for our situation. and CEO Dominic Iannitti said. The integration enables Mint “Our partnership with Simplifile users to pre-fill information such Varun Krishna, Senior Vice President, provides their vast network of as current mortgage information Intuit more than 39,000 settlement they’ve added to their Mint agents with easy access to profile. Then, they are able to DocMagic’s Total eClose services.” search for, apply and lock-in ” mortgage refinance rates with Rocket Mortgage in as few as Using Simplifile, agents can connect to all DocMagic’s eight minutes. eClose-enabled lenders in one place to exchange documents, data and closing logistics. “Across the country, Americans are struggling with their finances as many face difficult economic times. As interest “Process consistency is key to driving eClosing adoption rates are near an all-time low, now is an ideal time for with lender closing teams and settlement agents, regardless many to consider refinancing their mortgages and save of what percentage of loans qualify to be closed digitally thousands,” Intuit Senior Vice President Varun Krishna or where individual loans fall on the digital spectrum,” said. “For too long, the refinance process has been an Simplifile President Paul Clifford said. “The combination annoyingly tedious and overwhelming experience for all of of DocMagic’s proven eClosing technology and Simplifile’s us to find the right lender and loan for our situation. We’re settlement agent network creates a powerful foundation excited to help simplify the process for Mint users with this that enables lenders to scale their digital mortgage efforts integration of Rocket Mortgage and give our customers as jurisdictional and investor requirements allow and some peace of mind during this already stressful time.” capture every drop of efficiency and cost-savings possible.”

The Mint integration is Rocket Mortgage’s first with a DocMagic also integrated its eSign platform with VirPack to personal finance platform. facilitate the exchange of loan files and docs for compliant eSigning through DocMagic’s eSign platform. “Mint users are financially savvy and keenly aware of their finances — with many using the app to make smart Using VirPack’s API, electronically signed documents can

DoddFrankUpdate.com 11 automatically be accessed and retrieved from DocMagic’s “Partnerships, like the one between Mortgage Builder and eSign platform and delivered to the appropriate party, VirPack, elevate the digital lending experience for both the establishing a secure exchange of sensitive borrower lender and the borrower,” Mortgage Builder President and information and documents. The integration speeds up General Manager Stephen Ryczek said. “We are pleased funding and delivers loan files to investors, GSEs, the FHA, to select VirPack as our preferred document management servicers, QC firms, MI firms , and other relevant parties. integrated solution. Mortgage Builder is committed to creating positive customer experiences through intuitive “This integration helps our mutual clients to efficiently technology, streamlined workflows, and superior customer automate document workflows and consolidate the service. We believe our customers will find this new retrieval and packaging of documents according to their integration provides efficiencies in processing and speeds specific preferences,” DocMagic Director of Business loan closings.” Development Steve Ribultan said. “Ultimately, we’re bringing a greater level of organization and centralization Notarize announced a partnership with Adobe to integrate to bundling executed documents for borrowers, lenders and the ability to digitally notarize documents with Adobe investors.” Sign. The integration between Notarize and Adobe Sign streamlines and speeds up signing and notarizations. VirPack provides user-centric solutions for loan file management, e-delivery, and file indexing with full text As a result of the integration, the companies said there is optical character recognitions (OCR ) to significantly no need to exit or interrupt workflows to add eSignature increase productivity and modernize business operations. and notarization capabilities to contract processes. Adobe Sign customers will have instant access to a fully compliant, “VirPack is pleased to strengthen our partnership with RON experience with first and third-party notaries who can DocMagic,” VirPack Chief Operating Officer Wayland notarize documents for acceptance in all 50 states. Pond said. “The integration results in more secure document exchange and alleviates manual processes by “Five years after pioneering the remote online notarization leveraging e-signature and e-closing technology. This category, we’re at the magical moment where the market, partnership further underscores our commitment to the Notarize platform, the regulatory environment, and modernizing mortgage lending workflows. Our technology consumer demand have all converged to a place where focuses on improving operations by limiting manual industries and enterprises are clamoring for RON,” intervention, reducing operational overhead and oversight, Notarize founder and CEO Pat Kinsel said. “Together and increasing loan transparency.” with Adobe, we’re meeting millions of enterprises at this moment with an integrated platform that couples ease-of- Virpack, meanwhile, partnered with Mortgage Builder to use with security, all in one place. Once customers try it, provide the latter’s customers advanced workflow and they’ll never go back.” document management capabilities, including OCR that automates document recognition and data extraction to Adobe said Notarize shares its vision of replacing paper- determine if data extracted from critical loan documents based and manual processes with simple, easy-to- matches loan data in Mortgage Builder. implement experiences.

The integration enables users to launch directly from “By bringing the power of Adobe Sign together with the Mortgage Builder into VirPack; posts Mortgage Builder Notarize platform, our joint customers will be able to meet content directly to VirPack, enabling documents and a critical imperative of remote work: getting documents reports to be automatically categorized and indexed eSigned and notarized quickly, easily, and securely,” said without manual operations from a Mortgage Builder Ashley Still, Adobe senior vice president/general manager user; and recognizes Mortgage Builder specific and IDS- of digital media. generated barcodes automatically.

12 OctoberResearch.com FLEXIBILITY

Our CXChoice™ platform gives you your choice how to close. We provide flexibility and multiple closing options, including mobile notary, eSignings, Remote Online Notarizations (RON) and hybrid closings – so you can tailor your closing services to your customers’ needs. In addition, you have the ability to flex between signing types mid-transaction.

We are connected, so you don’t have to be. We help manage your costs. CXChoice leverages integrations with most title With CXChoice you can expand your capacity and production software giving you the ability to reduce your costs by outsourcing aspects of your immediately become e-enabled, regardless of your workflow. Leveraging our capabilities, you can offset workflow and technology and without the need for the costs of your existing staff responsible for signings, additional staffing and overhead. And, we have APIs eliminate the need to train and develop a panel, for custom integrations into your systems. remove the need to vet for third-party oversight with TCE verification, and replace the need to handle We help facilitate your eClosings. corrections or post-closing issues. With our eClosing Facilitation clients engage TCX to facilitate eSignings, Hybrid eSignings, IPEN, and Visit TheClosingExchange.com to see Remote Online Notarizations (RON) via CXChoice how CXChoice can help transform your integrations and partnerships. As RON legislation signing experience. transactions expands, leverage our trained and vetted panel of notaries to execute RONs in all approved states. Also, utilize our document tagging engine and eClose Facilitation to coordinate the distribution of the eSign documents for preview and release the day of signing saving you time and resources.

833.432.4321

www.TheClosingExchange.com

[email protected] Appraisal flexibilities helped sustain market momentum

The COVID-19 pandemic disrupted many parts of the loan with exterior-only and desktop appraisals process, including the ability to do in-home appraisals. • Requiring identification of “exterior” or “desktop” on the interior and exterior reports Markets across the country enacted shelter-in-place • Encouraging lenders to accept waiver offers when protocols, social distancing requirements and, in some eligible cases, deemed real estate activities non-essential. • Reminding lenders about its Loan Lookup tool to identify Fannie Mae-owned loans No matter how low interest rates sank or how many • Allowing alternatives when a Form 1004D cannot be consumers wished to refinance, both refinance and obtained purchase loans would have ground to a halt without the ability to get appraisals done during a pandemic. So, the “Traditionally, appraisers could gather input from government sponsored enterprises (GSEs) moved quickly homeowners or real estate professionals, but not rely on to make allowances for appraisal methods safer for both it without confirmation,” Fannie Mae said in a statement. consumers and appraisers. “The COVID-19 appraisal flexibilities allow reliance on such interested parties for video walk- In March, the Federal Housing throughs of the property or similar Finance Agency (FHFA) directed input.” the GSEs to provide alternative “The balance of refinance flexibilities to satisfy appraisal Many appraisers urged the FHFA requirements to facilitate transactions still requires a full to go further. liquidity in the mortgage market interior inspection as part of an during the coronavirus pandemic. appraisal, putting the appraiser “Our organizations ask that you It directed the enterprises to and everyone in the home at expand the temporary flexibility leverage appraisal alternatives to to a broader range of refinance reduce the need for appraisers to risk of either contracting or transactions. As you know, the inspect the interior of a home for transmitting coronavirus. existing flexibility for refinance eligible mortgages. transactions is restricted to loans Letter to FHFA Director Mark Calabria currently owed by Fannie Mae and FHFA said its directive was from appraisal groups. Freddie Mac,” several appraiser intended “to ensure the groups wrote in a letter to FHFA enterprises fulfill their mission Director Mark Calabria. “The of providing market liquidity ” balance of refinance transactions during the coronavirus national still requires a full interior emergency.” inspection as part of an appraisal, putting the appraiser and everyone in the home at risk of either contracting or Fannie Mae and Freddie Mac acted quickly to enable transmitting coronavirus. appraisal flexibilities utilizing desktop and exterior-only appraisals in certain scenarios to augment the use of “Further, loan sellers have also expressed concern about traditional appraisals. rep and warranty provisions that lean against the use of exterior-only appraisal assignments, favoring two extreme The flexibilities included: options — the interior-inspection appraisal or desktop appraisal,” the letter continued. “Our members report a • Allowing exterior-only inspection appraisals or desktop natural gravitation to the interior-inspection assignment appraisals in some cases. request as lenders seek cover from repurchase risk. With • Allowing desktop appraisals for purchase transactions more of the country ordered to shelter in place, we are when an interior and exterior appraisal is not available hearing from our membership they are increasingly not • Allowing exterior-only inspection appraisals for being allowed to enter the house by the homeowner or purchase and refinances of Fannie Mae-owned loans are declining to enter the house out of an abundance of • Revisions to the Scope of Work, statements of caution.” assumptions and limited conditions, and appraiser’s certifications. Requiring modified language to be used The letter was signed by the Appraisal Institute, the

14 OctoberResearch.com American Society of Appraisers, the American Society of “Even before the pandemic, Fannie Mae was exploring Farm Managers, and the Rural Appraisers Massachusetts how the adoption of cutting-edge technology and process Board of Real Estate Appraisers. The groups said they did updates can make the appraisal process more efficient and not believe it is appropriate to utilize interior-inspection more accurate for mortgage lenders, borrowers, appraisers, appraisals during a pandemic. and investors,” Fannie Mae stated.

“There are reasonable enhancements that can be made to “Appraisers can do much of their analysis work using online the exterior-only inspection appraisal to give additional data sources along with property information collected comfort to the GSEs in purchasing new balance sheet or facilitated by other parties using technology such as refinance loans,” the letter stated. “With virtual inspection 3-D scans and purpose-built mobile applications,” the technological tools now widely available, appraisers and enterprise continued. “Reducing the time that appraisers homeowners can work together to provide an interior view spend on physically visiting properties, when appropriate, of the property without putting anyone at risk, leaving or how much time appraisers spend commuting from fewer unable to refinance their homes. Other enhanced property to property, would make better use of their critical protocols could be developed by the GSEs to further help analysis and reporting skills.” illuminate the interior quality and condition.” Additionally, the GSEs created two new Uniform Appraisal FHFA said while it is familiar with emerging virtual and Dataset (UAD)-aligned appraisal forms: the 1004 Desktop data-driven technologies that, in conjunction with an and the 1004 Hybrid. exterior appraisal, could substitute for an interior appraisal, it isn’t looking to implement these technologies into the “Today’s Uniform Residential Appraisal Report Scope appraisal process because of the potential risks a new of Work, Limiting Conditions, and Certifications do not process may create. accommodate alternative appraisal processes,” Fannie Mae explained. “With FHFA’s permission, the GSEs aligned Fannie Mae also noted several technology vendors this year on modified Scopes of Work, Limiting Conditions, and launched mobile applications to facilitate safer appraisal Certifications in these new forms, enabling the GSEs to methods for consumers and appraisers. separately explore alternative appraisal processes. What’s important to know is that the 1004 Desktop and 1004 “Fannie Mae has seen a number of applications, some with Hybrid are not Selling Guide-compliant, meaning lenders digital safeguards such as GPS-based verification that the cannot deliver loans to us with appraisals on the new forms user’s location matches the property address. Additionally, unless the lender has a formal agreement to participate in some applications can produce measurements and floor our appraisal modernization testing.” plans directly through the technology, and some are enhanced by machine learning or third-party data,” Fannie Fannie Mae said, “We needed a fast, flexible solution to Mae stated. “While the traditional appraisal remains the react to the pandemic’s rapidly changing circumstances. primary valuation tool on purchase mortgages, it was good/ So, we created mandatory disclosures for appraisers to exciting to see from a process ingenuity and enhancement make within existing UAD forms. Second, the COVID-19 perspective during a time when it was needed the most.” certifications do not include Certification 10 so that you can utilize information from interested parties when other Even as the pandemic-forced changes in the appraisal data sources aren’t available due to mobility restrictions or industry have been embraced by many, others would social distancing.” welcome further adoption of technology in this space.

DoddFrankUpdate.com 15 MORTGAGE LENDERS Get Ready to Simplify & Automate Your Closings

Qualia Post pairs automation and a dedicated service team for mortgage lenders to take the hassle out of document fulfillment from real estate partners and free you up to focus on more high-value tasks.

Automate communications and connections with your title & escrow partners with Qualia Post.

Attract more Process orders Deliver a differentiated business seamlessly closing experience

Visit qualia.com/mortgagetech

© 2020 QUALIA LABS, INC. ALL RIGHTS RESERVED.