Closing a mortgage is a notoriously lengthy process. There are piles of paperwork to read through, explain, deliberate and eventually place signatures on all the dotted lines. With new three-day disclosure laws recently passed by the Federal Housing Commissioner going into effect August 2015, the push to ease the mortgage process is increasing. The new legislation was designed to protect consumers by mandating that mortgage lenders provide loan applicants with specific disclosures, such as estimates of settlement costs, to borrowers within three business days after their application. Luckily the Federal Housing Administration announced earlier this year that they will begin accepting e-signatures on all mortgage documents by the end of this year.
While the majority of the real-estate industry has been relatively slow in adopting electronic processing methods, the growing need to expedite the whole process makes electronic signing and distribution of documents increasingly more appealing. Electronic delivery allows lenders to quickly relay forms and information to clients who can read through the material at their leisure. Technologies are also surfacing which circumvent the tedious manual document signing process by allowing an electronic application to input one signature to all applicable fields. One signature applied to all the appropriate documents can save time during the closing process and increase efficiency.
With the increased reliance on digital data storage and transmission comes new exposures to cybercrime, fraud and information security breaches. There is a multitude of safety precautions any mortgage lending business should understand and implement to protect all parties data from cyber invasion. Creating secure networks and information storage archives is essential to the safety of your organization and clients’ digital data. Safely transferring mortgage documents require the use of encrypted or password protected file to reduce your company’s exposure risk to cyber liability related litigation. Assessing your cyber liability exposures is an essential part of any risk management strategy, as is obtaining the best Manhattan real-estate insurance for your organization.
At Tri-State Insurance Agency we provide a comprehensive real-estate Manhattan Business Insurance Portfolio for companies throughout Pennsylvania, northern New Jersey and New York, including Manhattan Real-Estate Insurance Policies and Manhattan Cyber Liability Insurance coverage. Call one of our agents at (888) 990-0526 and let us prove that we can offer you the best Manhattan real-estate insurance coverage around.