Mortgage Loan Origination Software (LOS)

Kathy Olsen

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Mortgage loan origination software: e-disclosures are safer

Posted by Kathy Olsen on Tue, Aug 14, 2012

Electronic disclosureWhen it comes to confidential mortgage documents and sensitive financial papers lender employees often ask “Can I email it?”  Yes, but to be honest, you really shouldn’t.

 If you’ve been in the mortgage business for a while, maybe you remember what it was like to fill out a 1003 on a typewriter? Or  switching from mail to fax to overnight carriers?  It’s human nature to be reluctant to change, but if that change is more efficient, saves money, or provides a more secure process, lenders tend to bite the bullet and embrace it.

 Take email for example. Years ago, software providers made it easy for lenders to email documents directly from their loan origination system. So today, the path of least resistance to get a mortgage document from here to there is to attach it to an email and click send.  Now that we’ve become so comfortable with our email assisted work, we tend to disregard that emails should not be considered a secure form of communication.

 We need to remember that we have the responsibility to protect our borrower’s identity from the electronic thieves that seem to grow in number daily. Just look at today’s cybercrime headlines to see that emailing documents is no longer the most secure methods. What if you emailed your borrower’s 1003 to their AOL account, only to find out later that it had been accessed by some hacker, account information and all?

 Fortunately progress has been made again by mortgage software companies. There are loan origination systems that provide a safer, more secure way than emailing delicate documents called “e-disclosure”.  E-disclosure takes safety one step further. Instead of sending a document actually attached to an email where it can be easily accessed and information compromised, e-disclosure provides a password protected hyperlink in the email to access the documents in a secure browser session from a secure server. For the lender it’s the click of a button, and for the borrower it is the click of a link.

 E-disclosure can be even more secure for your borrower by verifying your borrowers identity and also verifying that the person retrieving the documents is a human and not a machine. All of this nearly assures that your borrowers sensitive information will remain private.

 Contact us to learn more about e-disclosure and compliance methodology. 

Created on 06/07/12 at 11:57:33

Topics: Mortgage Loan Origination software, e-sign disclosures, electronic disclosures

Loan Software: When does an app become a "real" app?

Posted by Kathy Olsen on Mon, Aug 06, 2012

1003

Start a mortgage loan software meeting with the question ”When is does an app become an app?” and you will have as many opinions as you have attendees.

The “application” -- and what determines when a bank has a mortgage application -- has been hotly debated for years. Even now with RESPA guidelines that suggest that a bank has a mortgage loan application when there is a borrower name, SSN, property value, loan amount, income and property address.  These are, after all, “guidelines” that still leave room for interpretation.

Some mortgage banks consider that when a lender gathers enough information to make any type of determination as to whether or not they can help the borrower, then that is in fact an application because there was enough information in the conversation to make that determination.

Other banks dictate that until a credit report is ordered, there is not enough information for there to be an official “application”.

The “application date” and what determines it dictates subsequent dates as to when disclosures are issued and when a decision is rendered. The “application date” appears to be what everything else pivots upon.

About twelve years ago, OpenClose entered the loan software business to address the nuances that separate lender workflows. Unlike other mortgage software companies, we distinguish our company by being able to adapt to the little differences that help our customers thrive.

So when in comes to the RESPA rules, we've done our best to provide a variety of ways to accommodate different interpretations of when an app is an app. For instance, OpenClose allows its bank clients to determine when – and if – an application date should auto populate to the loan. The application date can populate (1) upon fulfillment of RESPA guidelines, (2) upon ordering of credit (3) upon submission to automated underwriting (3) upon submission to underwriting (4) or manually entered by the user. 

It's little touches like this that help lenders provide their employees with a comfortable and effective working environment.

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Topics: Mortgage Software, loan software

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