The Benefits of Going Paperless

In recent years, the shift toward going paperless has been gaining momentum. Consumers have led the way, forcing businesses to comply. Even the mortgage industry, which traditionally has relied heavily upon paper documents, has felt these effects.

With recent changes to industry regulations, servicers have had to make documentation clearly visible so that borrowers undoubtedly understand the loan terms and the responsibility toward their loan. These regulations, set in place by the Consumer Financial Protection Bureau (CFPB), have required servicers to send more notices to borrowers to ensure borrowers are aware of their loan’s current standing, as well as any changes that may affect the terms of their loans. Because the frequency of notices has increased, servicers may find themselves incurring more costs for printing and postage. In addition to reducing costs, ensuring that borrowers receive notices in a timely manner is also a concern for today’s servicers.

Although there doesn’t seem to be any indication that the mortgage process will be completely paperless anytime soon, emerging technology has helped to reduce the complete reliance on paper for both borrowers and servicers. Existing tools such as electronic communication, e-signatures, and electronic imaging have helped to modernize the mortgage process and make certain aspects of it digitally accessible. 

With the launch of FICS^®’ next generation of Mortgage Servicer^®, written using Microsoft’s Windows^® Presentation Foundation (WPF) – a subset of Microsoft^® .Net Framework, FICS included new functionality that allows our users to avoid printing notices when used in conjunction with FICS’ Radstar^® software, an integrated document and report management system. Radstar electronically stores and saves documentation and gives users the option to store the document in Mortgage Servicer for record retention or online distribution. This functionality not only reduces unnecessary printing, it also helps servicers comply with the E-Sign Act if they provide notices online.

Another large and important push for going paperless has come directly from borrowers. With online software, borrowers can easily and conveniently manage their loans – make payments, check balances, etc., as well as receive notices and alerts from their servicers. With eStatus Connect^®, an FICS web application that gives borrowers online access to their loan information, servicers using Mortgage Servicer benefit from being able to electronically provide notices stored in Radstar in eStatus Connect. This results in a win-win situation. Borrowers and investors are able to access their mortgage information from anywhere at any time, while servicers comply with industry regulations, meet customers’ needs, and save on costs associated with printing and postage.