CE & CLE FAQs are available under the Texas TIPS tab at - - PowerPoint PPT Presentation
CE & CLE FAQs are available under the Texas TIPS tab at www.stewart.com/texas If you have questions after the presentation, please e-mail the presenter or your favorite Texas underwriting counsel. In order to obtain a CE Certificate
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Because of opinions expressed by the Texas Department of Insurance (TDI) concerning rebates, legal credit is available only to: Attorneys who own title agencies that are Stewart Title Guaranty Agents Attorneys employed by a title insurance agent licensed with Stewart Title Guaranty or Stewart entities Fee attorneys who have an Escrow Officer license through a Stewart Title Agent or Stewart entity We welcome any other lawyers to listen, but cannot provide continuing education credit to you.
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E-Closing: Future or Now?
By: Dawn Lewallen, Senior Underwriter & Senior Compliance Counsel June 15, 2017
the closing documents are signed electronically. For the closing to be 100% paper less, the eClosing must include electronic notarization, as some loan documents require Notary.
(eSigned) Note. Other Closing Documents can be electronic or paper.
– eSigning is becoming commonplace (and expected). – eClosing in local offices is gaining traction – Remote Notarization is growing in coverage – still rare!
– The desire to provide better customer experience – Potential for increased liquidity and reduced cost for warehouse lines – Reduced risks for warehouse lenders (Immediate receipt of collateral & recognition of their security interest) – Reduced document processing and handling costs – Minimized delays in loss mitigation activities – Ease of proving compliance with regulatory requirements – Economic Drivers $2K per loan transaction.
– Potential for increased liquidity and reduced cost for warehouse lines – Reduced risks for warehouse lenders (Immediate receipt of collateral & recognition of their security interest) – Reduced document processing and handling costs – Minimized delays in loss mitigation activities – Ease of proving compliance with regulatory requirements
solutions.
pilots NOW.
Consumers are able to search for homes and schedule showings online using Zillow, Trulia, Move, etc. Listing Agreements and Purchase Contracts are now created using electronic forms and DocuSign, the exclusive provider of eSignatures for the National Association of Realtors. zipLogix allows Realtors to integrated Forms, DocuSign, transaction management and open escrow/title online. https://www.youtube.com/watch?v=5ixonU1R9X8
Approximately 30 percent of the nation’s mortgage volume flows through Ellie Mae’s Encompass platform which enables lenders’ use of DocuSign integration for disclosures and docs. Lenders focused on “efficiency” are turning to the consumer experience due to Rocket, Roostify, Blend…
Closing times are the benchmark of a lender today-Technology is pushing this in a myriad of ways:
mobile applications that integrate with LOS’s
with title and third party fee engines to provide timely disclosures, expect immediate access to fees to ensure same day disclosures
us eSign technology
documentation upload
and assets electronically and instantly providing day one certainty of loan eligibility
HARD STOP- TITLE AND SETTLEMENT AGENTS!
Web and mobile applications are used across many industries. Consumers expect a digital solution to improve their experience. Consumers expect these interactions because it is happening today. Examples:
How might it apply to us?
as younger users.
technology- Internet of Things will not be alien to them.
learners who are use to technology life enhancements.
Demographic Changes: $30 Trillion Wealth Transfer to…
– Gen X is in peak consumption/ earning years. – 30% of U.S. Spending with a home as top purchase.
– 93% say they want to own a home. – Millennials will expect a better experience (like Amazon, Uber, VRBO, Auto Finance, SoFi, etc.). – According to a Nielsen survey, millennials cited technology use as the most defining characteristic of their generation.
“Wow, that was easy!”
You can move quickly by focusing on immediately achievable benefits by implementing a few simple recommendations now.
disrupters that appeal to changing demographics have the potential to bring our industry to its own “Netflix” moment.
LENDING INSTUTITIONS ARE LEADING THE WAY!
and regulation have evolved.
participants are embracing and promoting digital mortgage.
ready and able.
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Use your special skills to bring eClose to market and drive the future!
Consumer, Lender, Realtor
YOU!
eSign Technology providers Rather than lender’s, eSign and remote notary companies driving the future!
Included
Requiring Notarization
by Lender
Trust)
Cancel/Rescind
https://www.fanniemae.com/content/fact _sheet/eclosings-emortgages-myths.pdf
Reduce number of documents, of missing pages, of missing or incomplete documents.
compliance, record retention schedules and control over access rights.
Simplify and streamline documents.
experience for everyone! – More time to review documents before signing. – Empowers customers to ask questions and be more active.
Buyer’s Travel Time (R/T) 1 hour Seller’s Travel Time (R/T) 1 hour Buyer’s Agent Travel Time (R/T) 1 hour Seller’s Agent Travel Time (R/T) 1 hour Total Travel Time 4 hours Closing Time 5 hours Total Closing Time for Each Party 6 hours
Buyer’s Travel Time (R/T)
Not required
Seller’s Travel Time (R/T)
Not required
Buyer’s Agent Travel Time (R/T)
Not required
Seller’s Agent Travel Time (R/T)
Not required
Total Travel Time
Not required
Closing Time 1 hours Total Closing Time for Each Party 1 hours
personal information.
Electronic signatures are valid if the parties agree to sign electronically under:
Uniform Electronic Transactions Act (“TUETA”) is codified at Colo. Rev.
§322.001 (et seq.)
and National Commerce Act enacted into law in 2000 (“ESign”, 15 U.S.C. 96 §7001 et seq).
creation). May be possible if we have evidence that the person esigining is sitting in the office of the lender, title company or attorney’s office.
trusts; or
Chapters 2 and 2A.
designated individual.” Stewart requires that the signature on the title policy to be a “wet signature.”
You must obtain consent from all parties to the transaction, including the seller, buyer/borrower and lender, for the use
electronic signatures in accordance with the state’s electronic transaction law!
LinkedIn, Google, etc.)
is awaiting the governor’s signature. When signed it will have an effective date of July, 2018.
necessary rules, any Texas Notary Public may perform an electronic notarization. An eNotarization must meet the requirements of any other notarization such as personal appearance of the signer. The electronic seal must meet the same requirements as a conventional seal. All parties must agree to have the notarization done electronically.
– Notarization, acknowledgement, verification, witness or oath can be satisfied by an electronic signature, attached to or logically associated with the applicable document or signature. Tex. Prop Code 15.004(c). – A physical or electronic image of a stamp, impression or seal is not necessary. Recording Requirements see Tex. Prop Code 12.0011(c). – TUETA includes a section providing for an electronic notarization.
under state law.
recording in the Public Records.
and Physical Privacy in Texas is governed by: – Texas Penal Code addresses unlawful interception, use, or disclosure of wire, oral, or electronic communications
physically appearing or appearing by interactive two-way audio video communications.
performance of notarial acts, record keeping, online notarization requirements, fees, termination and certain criminal penalties).
notarization (including a recording of the video and audio conference).
analysis)
406.024.
http://www.vuwriter.com /en/bulletins/2017- 2/sls2017002.html
Each individual seeking credit hours must send their own certificate request to: CEcertificate@stewart.com
Please include the following information:
closings Future or Now” In the body of your e-mail:
example: License Number: 1234567-890123)
For Attorney CLE Credit also include:
– Employed by Stewart Title Guaranty Company; – an affiliate; or – a Stewart agent
For more details, see the CE and CLE FAQs at:
http://www.stewart.com/en/stg/texas/education/texas-tips/ce-cle-faqs.html
You can access the full presentation materials 10 business days after this presentation as well as all current courses at:
www.stewart.com/texas under the “Texas TIPS” tab
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presented by:
For Questions/Comments Email john.rothermel@stewart.com
heidi.junge@stewart.com
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