integrating mortgage disclosures with income verification
TRANSCRIPT
e-delivery | e-signature | e-collaboration | e-workflow | e-business
Integrating mortgage disclosures with
income verification using the 4506-T
What you need to know
03/13/13
Agenda
IRS eSigning requirements
Existing challenges
Integrating 4506-Ts with mortgage disclosures
Q&A
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We Want To Hear From You
Join the conversation:
– Submit questions online using the
Questions area in right panel
– Make sure to grab key takeaways and get
questions answered via Twitter. Tweet
using: #e4506T
– Summary of questions and answers
provided:
eLynx LinkedIn:
http://www.linkedin.com/company/elynx
eLynx Twitter: @eLynx_Buzz
3
IRS eSignature Requirements
Authentication
Consent
Electronic Signature
Tamper proof seal
Non repudiation
Document Retention
Quality Check
Summary – complies with ESIGN and UETA legislation, most lenders
using electronic methods in other lines of business, almost all
consumer-oriented industries have adopted eSignature technology
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Who When Where What
Existing Workflow Challenges
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Lender Lender / eLynx
Application
Disclosures
Disclosure
Fulfillment
Consumer
Disclosures
Signed Docs Signed Docs
Disclosure
Execution
Lender
Decisioning
Order
4506-T
Tax Transcript
IRS Servicing Center
Income
Verification
IVES Vendor
4506-T
Fulfillment
4506-T
Tax Transcript
Disjointed workflow – separate processes require multiple interactions with consumer
Process complications – multiple vendors, data handoffs lead to slowness and
potential data issues, more system integrations
Complexity – managing disclosure and 4506-T results differently or manually
Avg 1-2 days
Avg 4-8 days
Achieving the Benefits of “e”…
… is not as simple as it seems.
Successful customer fulfillment is not a “walk in the park”
Electronic adoption rates poor
Customer experience less then ideal – fractured, phishing, incomplete
When converting from “All Paper” disclosures:
For “All electronic”
conversion
For “Mixed paper
& electronic”
conversion
Impact on Loan Duration is - 5.8 days + 4.3 days
Impact on Pull-Through is ↑ 2-6% ↓ 3-6%
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Five Common Missteps
Single document set solutions
Disconnected print or fax fulfillment
eDelivery and customer experience are not central to the design
Technology focused instead of process aligned
Short term goals versus long term KPIs
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New Alternatives
Achieve efficiency of going electronic without disruptions
Deliver and sign mortgage forms using the most convenient option
for consumers
Streamline interactions and processing hand-offs to shorten your
loan cycles
Deliver mobile technology your customers expect and close more
loans
Collect eSignatures on a 4506-T (basic)
Full service disclosure fulfillment (premium)
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If you are looking to:
Your options are:
Basic Workflow
Lender generates disclosure package with 4506-T or sends 4506-T
alone
eLynx returns electronically signed 4506-T to lender
– Signing evidence includes tamper-proof form and audit trail
– Compliant with IRS eSignature technology requirements
Lender works with IVES vendor to obtain tax transcripts
– Lender creates order and transfers signed form and signing evidence
– IVES vendor retains data for 2 years and conducts quality checks
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Lender eLynx
Application
Documents
Disclosure
Fulfillment
Consumer
Documents
Signed Docs Signed Docs
Disclosure Execution
Integrated Disclosure Fulfillment
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Lender eLynx IRS Servicing Center
Application &
Decisioning
Disclosures
Disclosure
Fulfillment
Income
Verification
Consumer
Disclosures
Signed Docs Signed Docs
4506-T
Tax Transcript
Tax Transcript
Disclosure
Execution
4506-T integrated with disclosure fulfillment, both electronically and
on paper
Tax transcript requests automated in workflow
Includes automated fax/upload options for borrower documents –
W2’s, tax documents, etc
All results returned to same loan folder or file system automatically
Let’s See it in Action
Electronically signing a 4506-T as part of a mortgage disclosure
package….
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Integrated fulfillment channels
Integrated disclosure
service
Electronic signature
Fax
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Benefits of Integrated Workflow
Consumer Experience
Minimize disruptions
Provide convenience of
both electronic and paper
Integrate documents
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Operational Savings
Eliminate extra or paper
4506-T handling costs
Automate storage of
disclosure and 4506-T
results
Reduce vendor interactions
Transactional Speed
Shorten processing time
Reduce data quality
issues
Service Value
Signed Disclosures
– Available same day if processed electronically
4506-T Processing and Handling
– No longer required
Tax Transcripts
– Available within 48 hours
– Imaged and returned to same loan folder as disclosures or back to your
eLynx Gateway
Borrower convenience integrated into workflow with RESPA and
audit compliance built in
Fast start implementation options
– Existing customers 2-3 weeks
– New customers 8-12 weeks
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More Information
www.elynx.com
Summary of questions and answers provided:
– eLynx LinkedIn: http://www.linkedin.com/company/elynx
– eLynx Twitter: @eLynx_Buzz
Your eLynx account manager
– 800.466.5969
Michael Pelfrey
– Twitter: @pelfrey
– 916.271.1705
Laura Venerable
– Twitter: @lauravenerable
– 513.612.5950
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