United Wholesale Mortgage announced Wednesday it completed its first virtual e-closing on July 28th, allowing borrowers to complete their closing completely remote for refinances.
While e-mortgages are making strides in the housing industry, e-closings are still rare. Back in May, North Carolina announced its first e-closing, with hopes of it becoming the first of many.
Now, United Wholesale took it a step further, and announced its first virtual e-close, saying buyers would never have to leave their home or wet sign a single document for refinance loans. While the closing in North Carolina still required a notary to be present while borrowers signed the documents electronically, UWM’s new solution allows borrowers to Facetime or Skype with the notary, making it the first e-closing borrowers can complete remotely, UWM told HousingWire.
“This is a revolutionary time for borrowers and independent mortgage brokers, as we’re taking convenience in the mortgage process to a completely new level,” UWM President and CEO Mat Ishbia said. “The days of being bombarded with reams of paper at the closing table are over.”
“Giving borrowers the ability to close a loan whenever they want, whether it’s at 11 a.m. or 9 p.m., will have an incredible impact on the entire experience,” Ishbia said. “Independent mortgage brokers will have an even stronger competitive advantage over retail competitors and large banks.”
UWM explained that previous e-closings required either some in-person contact or a notary to e-sign closing documents via a shared tablet, however the company’s new solution eliminates that step.
A borrower can now sign from any place with wireless access. They would then FaceTime with a notary in order to complete the closing live. The process allows for all documents to be signed, including the promissory note and mortgage.
To execute the online mortgage closing and make online closings available to borrowers across the country, UWM partnered with Notarize, a digital platform for legally notarizing documents online.
The e-closing technology is currently available to brokers in four states: Illinois, Montana, Virginia and Washington. UWM plans to continue expanding into new states throughout this year.
However, varying legislative requirements in some states is preventing all of them from accepting UWM’s new e-closing solution. Currently, UWM’s e-closings are limited to mortgage with a maximum of two borrowers.
