On May 5, 2017, North State Bank Mortgage completed North Carolina's first electronic mortgage closing. Before this closing, the majority of eClosings were just tests. However, North State Bank Mortgage intends to offer eClosings to customers as a faster and easier option.
North Carolina's First eClosing
The closing took place at the bank's office in Hickory, North Carolina. It only took about 20 minutes to complete, and the process was finished just after 12 p.m.
Elaine Marshall, North Carolina's Secretary of State, strongly supports eCommerce and helped the fully-electronic mortgage closing become a reality. Since August 2016, she has worked with a team of professionals to launch an electronic closing program, which will make mortgage closings efficient and safe for lenders and borrowers. She hopes that the program will become commonplace throughout North Carolina and the rest of the United States.
Marshall attended the closing at the North State Bank Mortgage office. She expressed her satisfaction with the process, saying, "None of the safeguards you expect when you close are missing. None of the professionals you expect to see when you close are absent today. The only thing missing is the stack of paper documents that slow down the transaction and that sometimes themselves cause delays and confusion."
North State Bank's president, J. Kenneth Sykes, says, "Making the mortgage loan process easier and more convenient for our customers is a priority for us. To be able to eClose will both enhance and simplify the customer experience."
The closing was also attended by several other important North Carolina figures, including:
- Ozie Stallworth, Director of Electronic Notarization
- Matt Hunoval, founder of Hunoval Law Firm and legal advisor to the Secretary's team
- Kelly Arrington, chief mortgage operations officer of North State Bank
- Beth Eller, mortgage sales director of North State Bank
Benefits of eClosing
Electronic mortgage closing will simplify the experience for both the borrower and the lender. Having piles of papers shuffling around during the closing process can be inconvenient and frustrating. It's easy to lose or mix up papers, and searching for the right documents can be time-consuming.
With eClosing, the process is much faster. There's no chance of losing documents, and everything is more organized. The closings still have all the safeguards and security measures of traditional closings, and they still require the presence of a notary. Borrowers will also still have access to legal expertise and guidance. Refinancing of a paperless mortgage will be very similar to the refinancing of a traditional mortgage. However, the closing process takes about half as much time as a traditional closing.
J. Kenneth Sykes, Matt Hunoval, and Ozie Stallworth presented more information on the eClosing at the American Mortgage Conference, which was held in Raleigh from May 17-19. Marshall and her team continue to support the use of eClosings throughout the state, and they hope to encourage the process in other states as well. As more and more processes become fully-electronic, other mortgage companies will likely start making the switch from traditional closings to eClosings.
July 13 2017