Certified Forensic Loan Auditors, LLC

 
  Upcoming Classes

Search CFLA's Article Archive:

From Robo-signing to e-Signing: The Future of Mortgaging

raleighnewstoday.com | April 11, 2015

Several days ago, the New York Times published a rundown on startups who are looking to digitalize and streamline the mortgage underwriting process, with the aim of putting loans into the hands of information savvy Millennials. Starting small but growing fast, the startups profiled aim to take digitalize mortgaging, allowing loan seekers the experience of getting loans from anywhere, anytime, with ease. Only a few days later, the U.S. Justice Department and J.P. Morgan came to a $ 50 million settlement on the banks’ robo-signing practices, a concession that the Wall Street Journal says involves “payments to more than 25,000 homeowners, including some who received inaccurate payment-increase notices during their bankruptcy cases.” Robo-signing–the practice of approving loans without sufficient oversight to essentially mass produce loans in the buildup to the housing crash–is seen as one of the more dangerous and unsavory practices from the great mortgage run. The old and new conditions of the lending environment feel so distant from one another and so connected at the same time. Two stories that in their own way illustrate the balance the lending industry has tried to strike between ease, availability, and safety . . . all the while negotiating cautious federal prohibitions against the type of practices that were instrumental in crippling the world economy less than a decade ago. A wealth of questions surround the industry, at once highly regulated to protect consumers and also largely insulated from the type of widespread competition that drives innovative products and offerings due to the high dollar amounts it handles.

The coming years will be interesting as traditional lenders and young upstarts tightrope walk their products into the market, trying to grasp the unique sensibilities and manage the distrust of younger homebuyers, while staying within the confines of ethical and legal lending. Tech and traditional lending aren’t diametrically opposed in theory, but the multi-trillion dollar goliath industry has been sluggish to keep up. Startups from Lenda to DocMagic are lining up as the market begins to shift from in-person underwriting to the digital space. And in the coming years, how loans are made will become all the more important in the competitive lending market, thanks to an ever-increasing demand. Two factors are coming together in such a way that, in all likelihood, there will be an immense push for consumers entering the housing market: demographics and the economy. Both pivot on the wants and needs to the youngest generation of homebuyers–Millennials, or those born between the early 80s and late 90s. The oft maligned, oft praised generation of phonegazers are coming to an age where purchasing a home is the next major life decision.

Millennials make up a substantial proportion of not only upcoming home buyers, but also the population at large–they are predicted to overtake the baby boomers, previously the largest generation, as the largest later this year. Up until recently, the recession and wage stagnation has prevented young graduates from getting the type of employment needed to grow a down payment and make a home purchase. But, as the job market starts to turn around, that may be changing. Will big traditional lenders make the changes to the status quo to court this immense emerging market, or will young upstart techies take the helm?

Beyond making loan underwriting more mobile and, for lack of a better word, swipeable, mortgage lenders need to overcome the enormous hurdle of distrust. Particularly for younger buyers who viscerally remember watching the generation before them, duped by confusing or unjust loan terms, foreclosed on at an alarming rate, banks are often seen as something of great skepticism. Last year, a Gallup poll found that only 26 percent of Americans have “a great deal” or “quite a lot” of confidence in banks, up from a record low of 21 percent in 2012. 28 percent say they have “very little” confidence. This is a problem both for traditional lenders and for real estate, as well as a marvelous opportunity for a new generation of lenders who can extract themselves from the “bank” archetype. By feeling less like a bank and more like a cool tech start up, can this prejudice against bankers be undermined? From my perspective–as someone of that age group–there is a strong likelihood. Whether mortgage loan startups take a slice or define market dominance like some of their Silicon Valley brethren is a question of how they clearly articulate how eSigning isn’t just robo-signing with an iPad.

 

Back to April 2015 Archive

 

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
spacer
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
 
BBB Logo

 

spacer

Contact us or view our Sample Documents & Audits by completing the form below.

  • Reload
  • Should be Empty:



 

DVD Sets Only $99

 

FREE Mortgage Fraud Analysis

 

Order Cutting-Edge Services Now

 

Quiet Title Packages from Licensed Attorneys

 

Affiliate Services

 

CFLA Sponsored Attorney Links

 

Take-Home Education Package

 

ALB Law Firm

 

Advocate Legal

 

The True News Network

 

Rubenstein Business Law

 

Atighechi Law Group

 

Scunziano & Associates

 

Get Certified to Perform Mortgage Securitization Audits

 

CFLA Training Academy

 

Expert Witness Services

 

Cutting Edge Expert Securitization Reports

 

CFLA Credit Cards

 

Breaking News

 

Letters to the Editor

 

CFLA Weekly Newsletters

 

Code of Ethics

 

Testimonials

 

Instructional Videos

 

Job Opportunities

 

License Opportunities

 

MARS Rule

 

Product Samples

 

Resource Links

 

Servicer Information

 

Foreclosure Laws

 

REST Report

 

Quiet Title Packages from Licensed Attorneys

 

Advertise on CFLA

 

Advertising Space: Mortgage Securitization, Quiet Title

 

Certified Forensic Loan Auditors, LLC
13101 West Washington Blvd.
Suite 444
Los Angeles, CA 90066

Toll Free: 888-758-CFLA (2352)
Mobile Users: CLICK TO CALL
info@certifiedforensicloanauditors.com

   
 
CFLA IS NOT A LAW FIRM AND DOES NOT PROVIDE ANY LEGAL ADVICE. CFLA DOES NOT OFFER FORECLOSURE CONSULTING OR FORECLOSURE RELIEF
SERVICES. CFLA DOES NOT OFFER OR ASSIST WITH ANY LOAN MODIFICATION SERVICE. CFLA ALWAYS RECOMMENDS THAT CLIENTS RETAIN COMPETENT COUNSEL IN THEIR RESPECTIVE JURISDICTION. CFLA HAS A FREE PROGRAM TO REFER CFLA CLIENTS TO LAW FIRMS IN NEARLY EVERY STATE AND CFLA
DOES NOT CHARGE OR OBTAIN REFERRALS FEES FOR THESE SERVICES. SERVICES NOT OFFERED TO RESIDENTS OF THE STATE OF NEVADA.

 
Home About Us Privacy Policy Terms of Service Disclaimer SERVICES Careers Contact Us
 
COPYRIGHT © 2007-2016 Certified Forensic Loan Auditors ™ All rights reserved