Blend adds El­lie in­te­gra­tion for dig­i­tal mort­gage dis­clo­sures

A new in­te­gra­tion between Blend and El­lie Mae seeks to im­prove the use and ac­ces­si­bil­ity of elec­tronic mort­gage docs, the lat­est in an in­dus­try ef­fort to cre­ate a more sim­pli­fied and con­sis­tent bor­rower ex­pe­ri­ence.

National Mortgage News - - Contents - By Elina Tarkazikis

Im­prov­ing the bor­rower ex­pe­ri­ence — and mak­ing it more con­sis­tent — is one of the pri­mary mo­ti­va­tions be­hind the re­cent de­vel­op­ment and adop­tion of dig­i­tal mort­gage tech­nol­ogy.

Blend, de­vel­oper of a con­sumerdi­rect point of sale sys­tem that en­ables au­to­mated bor­rower self-ser­vice mort­gage ap­pli­ca­tions, is in­tro­duc­ing elec­tronic dis­clo­sure de­liv­ery to its bor­rower in­ter­face in an ef­fort to pro­vide a more seam­less, sim­pli­fied and uni­form user ex­pe­ri­ence.

The new fea­ture was de­vel­oped through an in­te­gra­tion with El­lie Mae’s En­com­pass loan orig­i­na­tion sys­tem. Essen­tially, a lender that uses El­lie Mae’s doc­u­ment prepa­ra­tion soft­ware can gen­er­ate elec­tronic dis­clo­sures within En­com­pass and de­liver them to the bor­rower through Blend’s con­sumer-fac­ing por­tal.

The in­te­gra­tion will sup­port a seam­less flow of loan data and doc­u­ments between par­ties and pro­vide an en­hanced ex­pe­ri­ence for e-sign­ing, re­view­ing and sub­mit­ting dis­clo­sures, while also sup­port­ing full com­pli­ance track­ing on each dis­clo­sure.

This type of col­lab­o­ra­tion between an LOS, doc prep soft­ware and bor­rower por­tal is by no means brand new to the mort­gage in­dus­try, but it re­mains es­sen­tial as lenders adopt more dig­i­tal mort­gage ca­pa­bil­i­ties, while also main­tain­ing com­pli­ance with reg­u­la­tory re­quire­ments. For ex­am­ple, Blend’s new fea­ture helps lenders abide by the TILA/RESPA in­te­grated dis­clo­sure rule by cre­at­ing a dig­i­tal au­dit trail and has­ten­ing the process to more eas­ily ful­fill time-sen­si­tive re­quire­ments.

“We’ve iden­ti­fied a par­tic­u­lar gap around dis­clo­sures. Due to var­i­ous rules in reg­u­la­tion that ex­ist at the fed­eral and state level, lenders have to de­liver these doc­u­ments to bor­row­ers with cer­tain time con­straints,” Nivi Jayasekar, a Blend prod­uct man­ager, said in an in­ter­view with NMN. “What we re­ally end up with is­sues around is that lenders end up hav­ing to de­liver dis­clo­sures through phys­i­cal mail, and the other area is that this can re­ally add a lot of time to the loan orig­i­na­tion process.”

The Blend bor­rower in­ter­face is de­signed to be easy to use on both desk­top and mo­bile de­vices, said Josh Pratt, vice pres­i­dent of tech­nol­ogy at Ver­i­tas Fund­ing, a Utah-based mort­gage lender and Blend cus­tomer us­ing the new dis­clo­sure func­tion­al­ity. The sys­tem also helps bor­row­ers ex­plain the im­por­tance of var­i­ous loan doc­u­ments and the ben­e­fits of re­ceiv­ing them elec­tron­i­cally.

“The in­ter­face is more modern, more in­tu­itive, it’s eas­ier to nav­i­gate; it ful­fills the needs of those younger mil­len­nial bor­row­ers who want to do ev­ery­thing on their phones, plus it works for other less tech­no­log­i­cally savvy bor­row­ers,” Pratt said.

Blend es­ti­mates the new func­tion­al­ity can save lenders $15 per each set of loan dis­clo­sures com­pared to an en­tirely pa­per-based process. While that amount is small next to the nearly $ 8,500 it costs to lenders to orig­i­nate a mort­gage, the cost sav­ings ac­cu­mu­late with scale. More im­por­tant is the time sav­ings from elec­tronic de­liv­ery and the peace of mind of a dig­i­tal au­dit trail for reg­u­la­tors.

Elec­tronic sig­na­ture laws re­quire bor­row­ers to opt in to re­ceive pa­per­less doc­u­ments and Blend es­ti­mates its lenders en­joy a 99% bor­rower opt-in rate. The San Fran­cisco com­pany in­tends to cre­ate sim­i­lar doc­u­ment-de­liv­ery part­ner­ships with other loan orig­i­na­tion soft­ware and doc­u­ment prepa­ra­tion ven­dors in the fu­ture.

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