OnLine Lending Is Picking Up eSpeed

May 28, 2002
| By Katy Rent |
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GRAND RAPIDS — Five years ago when Greatland Corp. launched what it called its E-Loan Delivery Solution, the company didn’t know to what lengths the product would grow.

Recently, the company came up a new service for business managers at mortgage lending institutions with heavy loan-processing traffic.

The service combines access to more than 200 mortgage-related documents with e-signature capabilities and the option of on-site or Internet-based delivery.

The technology allows lending institutions to access and utilize mortgage forms on the Internet, along with many other related services the program provides.

“The idea of the system,” said Ken Carpenter, vice chairman of Greatland, “is to help businesses grow entirely out of a paperless loan origination system so that they can focus on the volume of loans rather than on the loan technology.”

The system seems simple. Each lender enters information into its loan origination system and Greatland then merges that data with its own or with the company’s own custom electronic documents into a common document that can be used across multiple systems.

This makes it easier for the institution to read each document and also provides continuity and a direct delivery system. According to Steve Hulst, national sales manager for Greatland, it also works as an important in cost-saving measure.

“Historically loan delivery has always been done by an overnight courier, which is very expensive,” Hulst said. “We are now able to replace that with free Internet delivery, which is also instant. What used to take days and nights now takes 15 minutes.”

People in the mortgage industry agree.

“An e-loan delivery system will make the loan approval process faster,” said Mark Schilickman, co-owner of Franklin Mortgage. “Downloading documents from an application service provider would save time, and I would have the security of knowing that all of my loan documents are going to be compliant.”

The system also allows documents to be updated and corrections to be made a process that again, at one time, added days to the completion of the loan papers. Through the E-Loan Delivery Solution each loan form can also be directed to a printer anywhere in the country, including online signing rooms.

Digital signatures and electronic delivery are both highly secure, said Carpenter, also enabling transactions to be completed in real time over the Internet. This fairly new process, only becoming officially legal last Oct. 1, is a result of a partnership formed between Greatland and iLumin Corp.

What e-signing means exactly is that digital signatures are created from an encryption-based technology called public key encryption that allows for the electronic “signing” of mortgages.

Encryption technology scrambles electronically transmitted information so the designated recipient of the information is the only one that can read it. As a result, the recipient can be sure it is from the sender and the sender can be sure the right person has access to confidential documents.

When documents are delivered to the online signing room, participants can originate, review, modify and sign important lending documents, thereby enabling other parties to sign and close the transaction online.

Carpenter again stated that this process is highly secure because of a measure taken when allowing participants into the signing rooms.

“All parties must possess a trust ID digital certificate, which is the only Internet credential needed to complete trusted transactions online,” he said.

Other options to facilitate third party processing and signing include Internet protocol printing (IP), where forms will be set to print at the closing/broker location; electronic package, in which forms are e-mailed to the proper location; or Greatland will print and deliver forms to a location specified by the client.

According to Carpenter, 30 to 50 documents currently are being used in loan application and approval.

“This is something a company needs to stay on top of and constantly update. We are taking the worry out and will update all forms and keep clients informed of what is out there,” said Carpenter.

The service varies in cost between two essential pricing scenarios.

The first scenario is based on a yearly price of $500. This service includes access to the entire library of documents, all service problems, delivery options, and hosting services. The second scenario is based on a per-use price of $3 to $10 per transaction. This allows access only to the document library.

“We are here to provide this service to area lenders and brokers to assist and speed business,” said Hulst.

“We understand the breakdown and can supply companies with our knowledge that will only assist them in performing their job to the best of their ability.”

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