Using Technology To Achieve More Efficient Real Estate Closings
The mortgage industry is shifting focus from re-fi loans to purchase loans as the economy improves and more buyers are qualifying for mortgages. In September 2016, re-finance transactions accounted for 45 percent of all mortgages closed, while purchase transactions have grown to 55 percent of the total. As interest rates continue to rise, re-fi transactions are most likely to continue declining. As the average FICO score for a closed mortgage drops and the percentage of closed loans continue to climb, lenders are gearing up to satisfy the expectations of those buyers, specifically in loan closing time.
Buyers Demand Shorter Rate Locks
When the TILA-RESPA Integrated Disclosure Act (TRID) was enacted in 2015, the average time-to-close for a residential purchase loan quickly climbed to an average of 50 days, where it had been closer to 30 days before TRID, and buyers would typically lock their rates as soon as possible. The longer time-to-close meant that buyers had to either wait longer to lock their rates and risk an increase, or they had to take longer rate locks at greater cost. Currently, buyers are demanding shorter closings that allow them to take 45-day rate locks, instead of 60-day or extended rate locks. In an effort to meet the expectations of buyers, lenders are working toward achieving an average time-to-close of 30-35 days, which would allow buyers to use 45-day rate locks comfortably, or 30-day rate locks by taking a little risk and waiting to lock.
In turn, lenders are turning up the pressure on their service providers to streamline their processes and provide faster service, to help them achieve this daunting goal of a 26 percent cut in average closing time. Providers who can’t keep up will soon be left behind.
Shorten The Cycle With Technology
Easy Soft Real Estate Closing Solutions can help complete the closing process in less time, with fewer errors, and assured compliance. Start with simple, one-time data entry, and after that, any form or report you select will automatically fill with the pertinent information from the central database, automating form generation. The suite includes a forms library of more than 200 standard forms, and you can create custom forms for any application you need. Custom forms can be saved in the library, for easy sharing. The integrated BeesPath ClosingBridge security protocols let you and the other involved parties in each transaction communicate privately and transmit data and documents securely out of sight of hackers. Easy Soft Real Estate Closing Solutions produces forms that are fully compliant with TRID, HUD, and ALTA Best Practices, and updated for accuracy. Easy Soft is simple to use and requires little to no training and the software can be up and running in as little as ten minutes. Start a free trial and see how Easy Soft Real Estate Closing Solutions can help you meet the increasing demands of the changing real estate closing process.