Per research done by SnapDocs (who have a vested interest in these): (Boldface is mine.)
The mortgage industry has been talking about replacing its paper-dependent processes with digital ones for two decades. But while online applications have become more common, true stem-to-stern digital mortgages are still a dream for most lenders.
The upside to offering a digital mortgage process is enormous: greater customer satisfaction, improved quality control, faster turn times, and enhanced loan originator productivity, among other pluses.
But the barriers to implementation are not small either. The process is complex, costly and, if done poorly, will potentially cause more harm than good.
As a former productivity analyst, I concur with Arichter’s remarks. I’ll add this: if there was ever a “paper-oriented” industry ripe for streamlining and paperwork reduction, it’s the mortgage industry. The amount of paper [waste] and redundancy, coupled with copies of this, duplicates of that, ridiculous initialing of documents that are single-use/one-time-only inclusions in signing packages that serve no discernible purpose, it’s beyond my understanding. But, since no one seems interested in cleaning this up, let’s us notaries sally forth with pen and stamp in hand and get the job done.
That pages require initials is probably related to someone somewhere saying “we didn’t get a chance to review it” when addressing signing a document in court. Lawyers dream up all the initialed pages to protect lenders from borrowers trying to claim they had no chance to review what they were signing. In my opinion it’s a hang over from point and sign methods that left borrowers bewildered. We have borrowers initial every page of a Deed of Trust. I always say “take all the time to review this document that you would like” - guess how many actually review what they sign? I’d say zero going on none. It’s rare. Most borrowers want to sign and get it over with. I’ve also signed with borrowers that have to go online and esign from the table on hybrids where they have to esign to complete the paperwork. I’ve never seen a signer take the time to read what they are signing. They click click click to get it done. Guess we’ll find out.
