According to, Advancing eMortgage, a team developed to study e-mortgages by mortgage giant, Fannie Mae, an electronic mortgage process could, in fact, cut up to 30 days off the time it takes to close a loan.
It could also save the mortgage industry an average of nearly $1 billion a year in paper!
Advancing eMortgage has been focusing on three key elements:
1. Borrower financial passports - This will allow for online financial profiles that can be shared with lenders
2. Loan file service - This will allow electronic storage space for document from loan files.
3. National mortgage registry and clearinghouse - This allows for space to keep electronic promissory records.
Nancy Alley, VP of strategic planning at Simplifile, a company that helps record mortgages electonically states, "This (change) will allow stakeholders much earlier in the origination chain to derive value from going electronic, that should help adoption. Plus, an electronic process should drive a better consumer experience."
Nearly 25,000 mortgages had electronic promissory notes in 2013, this figure represents only about 1% of all mortgages across the nation.