Matter of Time (Saving)
How Technology is Transforming Mortgage and Settlement Services
by Chip Riordan
A ccording to a recent report by RealtyTrac, the number of active home flippers in 2015 reached its highest level since 2007. This is a positive sign for both the investor and the consumer, right? Not quite. There are still hurdles to overcome. Inventory continues to be a challenge. While April saw its second monthly increase in existing home sales at a seasonally adjusted annual rate of 5.45 million, sales still remain below the peak. The decreased available inventory has caused an increase in real estate prices in certain markets. Additionally, Millennial buyers are constrained by limited credit history and the need for larger down payments. These and other factors have ultimately stymied the market. With less inventory in the market, time is critical—not only for investors, but also for agents finding buyers who are credit- worthy and capable of closing in a timely manner. This is why finding a lender who can execute mortgage loans integrated with settlement services without sacrificing speed, accuracy and transparency is critical for any real estate investor. The home-buying process is one of the most important financial decisions an individual will make. Today’s buyer is doing more research prior to engaging with a real estate professional. Because of this, the consumer wants (and to some extent demands) convenience, speed and lower costs. The goal of modern service providers is to deliver customer experience that can exceed these expectations. In order for this to occur, technology has to be a core competency. Leveraging technology will streamline processes, reduce unnecessary fixed overhead and integrate functionality that previously would require other third parties. In turn, companies can be more efficient, enhancing speed without sacrificing
accuracy, as well as reducing costs that can now be shared with the consumer. Over $1 trillion of new originations are done annually in the mortgage market. Consumers are looking for solutions as they find in other aspects of their life rather than the traditional, expensive, legacy process of using a mortgage broker, loan officer or having to set foot in a brick-and-mortar bank branch. Excess layers add time, which inherently add costs. Today the average time to close on a loan is approximately 45 days, regardless of whether it’s a refinance or a purchase. Clearly, the traditional process is inefficient and only getting worse. There is now a better alternative to the traditional mortgage and settlement services processes. EasiLoans was created to provide significant cost savings, convenience, speed and transparency to all parties involved in the real estate transaction. EasiLoans’ management has over 25 years of experience processing loans and settlement services nationally. We have designed a completely integrated platform that will offer the consumer a fully integrated mortgage and settlement service solution end-to-end. The platform is delivered by our licensed federal savings bank (allowing national coverage). By leveraging our joint industry knowledge of technology, mortgage loan processing and settlement services, this is the first platform delivered to the marketplace that is all-encompassing. The scalable, advanced technological platform makes the lending and settlement services process quicker, more transparent and more accurate for the borrower, with less out of pocket for the consumer due to a business model with truly no application or underwriting fees coupled with the most competitive rates offered. The efficiencies of the platform reduce the time to close to approximately 15 days on average, nearly one-third the industry average. This results
in a better customer experience. For the professional house flipper this means less time waiting to close, reducing carrying costs and freeing up cash flow to move onto the next project. Through EasiLoans’ integrated transaction and investor management system, known as EasiLink, all necessary components of the loan transaction— from application to close—are effectively and efficiently processed, managed and executed. Every step of the loan can be scheduled and completed online, including ordering required and optional settlement services as well as viewing and accepting all disclosures and documents directly through the platform. EasiLink provides a transaction dashboard providing all parties a view of their respective involvement while keeping all parties updated of the status and outstanding tasks in real time. With that said, there are times when speaking with someone directly is preferred or necessary. At EasiLoans, each customer is assigned a dedicated Personal Assistant to enhance the high-touch, constant-contact experience. The real estate business is evolving, and those who wish to remain at the forefront will need to leverage technology allowing the consumer to be in control. • experience in the financial services industry, Riordan has worked with lenders to implement a variety of technologies and solutions. Prior to joining EasiLoans, he was President and CEO of CMSI. CMSI was sold to FIS in April of 2014. During his more than two decades with CMSI, he has worked closely with consumer lenders to deliver products and services that have materially contributed to their success and profitability. Prior to joining CMSI, Riordan spent several years with EDS and Citicorp. He holds a BS degree fromMarist College. Chip Riordan is President and COO of EasiLoans and was an instrumental member of the team that launched the company. With more than 35 years’
6 | INVESTOR REVIEW
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