Freddie Mac says that a person applying for mortgage
signs at least nine documents, which automatically amounts to a heap
of pages. Mortgage has been like this ever since it was conceived,
but that's about to change soon. Since its introduction more than a
year ago, paperless mortgage has become a blessing to would-be
applicants. Every document necessary is stored in a thumb drive for
the mortgage holder to take home and review.
Although paperless mortgage is still a minor trend
(where less than a tenth of lenders have it), many in Utah have since
benefited from it. The digital signature in every document, which can
be done once instead of multiple times, verifies their authenticity
and legality. Meetings with mortgage lenders are cut short due to the
quick and easy process. However, paperless mortgage faces the
challenge of security, now that the documents aren't totally “in
writing.”
Furthermore, experts claim that notarization is what's
keeping paperless mortgage technology from truly taking off. Under
federal law, mortgage documents must be signed in the presence of a
notarized witness. As the short meeting is usually done by phone or
online, some raise concerns on how safe the system is for future use.
Many people aren't complaining about having too many papers to sign;
but signing page after page may leave their hands numb.
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