Encomia Sees E-Mortgages Easing Document Burden.

NEW YORK -- One of the benefits of adopting e-mortgage technology, according to advocates of the trend at Encomia, is that the cost and time devoted to document custody services can be greatly reduced.

Electronic documents are also easier to access once they are archived. An investor, for instance, can go into an online system and see the mortgage note, rather than having to order the physical document or a copy from a warehouse someplace.

And an additional benefit, according to Encomia president Andrew Dubinsky, is that electronic and digital documents reduce the amount of time and resources devoted to checking one document's information against another.

"You are really eliminating the stare and compare," he said. "At the end of the day basically, the borrowers pay for that extra effort," Mr. Dubinsky said.

In a traditional lending environment, he said lenders and their business partners typically compare information from one document or computer screen to another document on at least four or five different occasions. Instead, e-mortgage systems provide robust data tools that allow lenders to perform checks and audit functions more easily.

Electronically generated documents also ease reconciliation when loans are being boarded onto a servicing platform.

The faster pace of tasks such as secondary market transfers and boarding loans onto a servicing system reduces cycle times, saving money, according to Encomia. For instance, a correspondent lender may benefit from faster turnaround on a warehouse line of credit, Mr. Dubinsky told Mortgage Servicing News. Reducing cycle times is a key benefit, especially in the correspondent lending world.