Quicken Loans announced Monday it is now the first lender to develop the capabilities to perform electronic mortgage closings in all 50 states.
This is significant given the size of the company and its market share. Home Mortgage Disclosure Act data from 2018 shows that Quicken was the second-largest mortgage originator for the year by mortgage volume, originating $81.4 billion in loans and holding 4.7% of total origination volume, according to HMDA data prepared by iEmergent.
Since its first eClosing in November 2017, Quicken Loans has completed 96% of all eClosings in the U.S. mortgage industry, according to the company’s volume registered with the Mortgage Electronic Registration Systems eRegistry.
“For more than 30 years, we have worked tirelessly to improve the mortgage process. We are continually researching, building and implementing new technologies to streamline the entire client experience – from start to finish,” said Jay Farner, CEO of Quicken Loans. “This is a turning point for the housing industry and the first step in reducing one of the biggest pain points in the mortgage process. We will not stop until our clients can close their home loan from anywhere, at any time.”
While eMortgages are making strides in the housing industry, eClosings are still rare, mostly due to state restrictions surrounding eNotaries. However, that is slowly beginning to change.
Today, there are three ways to complete a mortgage electronically: an in-person hybrid eClosing, an in-person electronic notarization and a remote online notarization. For Quicken, all three are facilitated by its sister company, Amrock.
But there are still some restrictions because of state, local and even federal laws that require wet signatures on certain documents. Currently, Quicken Loans allows for hybrid eClosings in all 50 states, which includes both traditional and electronically signed documents. Users will digitally sign nearly all of the documents, having to wet sign three to five documents, depending on the state – as opposed to 17 documents that need to be hand-signed in the traditional method.
Borrowers qualify for an eClosing if they are refinancing into a conventional fixed-rate loan for a single-family home and meet the other eligibility requirements – for example, a loan using a power of attorney is not eligible for an eClosing.
Another option is IPEN eClosings. When borrowers use the IPEN process they digitally sign all the documents on a mobile tablet or laptop, with the notary or closing agent present. This is very similar to the hybrid process, but a pen never has to touch paper. Using this method ensures there are no delays in the process caused by missed signatures because, like most online forms, they will not be able to submit the closing package unless all the signatures are completed. Borrowers who are refinancing can now finish their mortgage process with an IPEN eClosing in five states where electronic notarization is approved and authorized: Arkansas, Colorado, Iowa, Minnesota, North Carolina and Pennsylvania.
And the last option is the RON process, where all documents are digital and are both signed and notarized electronically while connected via web video conference with a notary who walks the client through each step of the closing process. With the RON process, consumers can close on their mortgage from anywhere, at any time. Quicken Loans currently uses the RON process in the state of Virginia. More states are expected to be added soon.
Quicken Loans is also making its hybrid eClosing technology available to partners including brokers, regional banks and credit unions in 33 states and the District of Columbia.
“It’s important for us to provide our broker partners with the latest technology available,” QMLS Executive Vice President Austin Niemiec said. “Not only do we offer competitive interest rates and the industry’s best mortgage insurance rates at QLMS, but we give our partners the technology that will help them better serve their clients.”