E-Mortgages on the Horizon for FHA Reverse Mortgages?
Back in April, Reverse Mortgage Daily did an article on the possibly of Federal Housing Administration’s E-Mortgages coming soon. THe FHA is the arm of the government that insures and regulates the Reverse Mortgage Program. Two months later, the Mortgage Bankers Assocation sent a letter to the FHA requesting the use electronic signatures on all origination forms.
The FHA, which currently supports limited e-signatures, does not allow lenders to originate loans completely using paperless transitions. The MBA is adamant, however, in supporting e-signatures and the various benefits that come from originating paperless transactions such as “less paperwork lost, fewer possibilities for fraud, lower costs for borrowers and reduction in the time it takes to close a loan”.
This continues the trend, in recent years, to make everything and everyone more comfortable by putting all the information necessary at your fingertips. I agree technology has been our savior many times over, helping us connect to each other in greater, more efficient ways. After all, bills are paid online, tickets are purchased, clothes are ordered, books are read, all from the comfort of home, so why should loans be any different?
One of the reasons is the considerable reliance on technology we all seem to have. We need our technology, we need it now, and it’s virtually impossible to live one day without going on the internet to check out what’s going on. If the recent 2007-2009 carries any weight for being the worse recession since World War II (even though its effects are still being felt four years later), it was made worse by the fact that everyone was so interconnected that a recession in the United States was having repercussions in other countries like never before. Not to mention, the Blackberry Outage that plagued consumers for days and left many in the dark as far as their lives and businesses were going.
Regardless of the outcome, these changes won’t come into fruitation until at least 2015 and have yet to be included in the FHA budget. The benefits of e-mortgages are plenty, we just need to be careful not to lose the personal touch that makes us human. In a previous post, I talked about building connections with clients and perosnally getting to know them while helping our relationship grow. Technology might be great but when it begins to replace the interactions that help us stay connected in a personal level.