Right now in the eyes of most consumers, closing a home mortgage is the most stressful period of a home sale. The papers are flying in all directions, no one is sure that all the documents will be at the closing table, and tempers and nerves are at a fine edge.
So when the Mortgage Bankers Association, American Land Title Association, and the American Escrow Association announced they are working on uniform standards for closing procedures, called eClosing, it has great potential to solve many problems.
But one thing I have learned in real estate is that there are many variables for every home sale. Can these groups find enough common ground to create a template that works, or is this another pipe dream?
I would love to hear your opinions.
Farwell said most lenders, settlement services and other closing providers are not yet ready to leverage the Internet. Their business processes, the number of people involved in the process… all that is wrong for running an e-business. “The eClosing is about rebuilding the closing process…and the organization from the ground up,” he said.
“A number of factors are hastening the standardization of real estate closing instructions and the adoption of electronic closing services,” he said. These include the widespread use of the Internet, more Internet-savvy young home buyers, the adoption of Internet technology by real estate agents, and changes in Federal regulations that mandate more accurate “good faith estimates” while encouraging consumers to shop for closing services. via FOXBusiness.com.
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That would be so much better! I wish it was just all one big interconnected, fraud prevented, secure system that the client, agent, and broker were all connected to.
This would be a huge step! Having uniformed standards should make things move more efficiently and prevent fraud.