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How far away is the paperless mortgage closing?
Experts say the mortgage industry is still a long way from the day when paper doesn’t pass between lender and consumer – and it is possible that the paper-free mortgage will never exist.
Three hurdles must be cleared before mortgages inch closer to becoming paperless, says Chris Azur, chief operating officer of ATM Corp. of America, a technology provider that works with mortgage lenders. First, lenders must buy into the process. Then borrowers must do the same. And finally, the country's more than 3,500 courthouses, the keepers of the records involved in homeownership, must be willing to convert their reams of paper files to electronic ones.
That last hurdle may be the highest, Azur says.
There is some progress being made. Some title groups already offer an option called SureClose. This online transaction-management program allows borrowers to log onto a Web site and see all the documents relating to their loan. After closing, the title company provides SureClose customers with a CD of images of all the paperwork.
Source: The Washington Post, Dan Rafter (07/01/2006)
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