Digital Closing Helpful but Chinks Remain
Remote online notarization (RON) has been on a high since the pandemic hit the town. Digital closings have allowed the housing industry to operate in times of social distancing and lack of in-person contact. However, Kimberly Smathers, Snapdoc’s Head of Information Security and Compliance stated during National Mortgage News Digital Mortgage conference’s panel discussion that the growth in this new design could lead to resource-constrained new products.
“Are there enough engineers to create the product?” she asked. “Is there a rigorous security process built into how that product is developed? I think that you would want to be cautious when thinking about what platform you want to use and investigate them directly with the company,” she asserted.
Digital closing is pretty secure for the borrowers but “If I’m depending on the borrower to go through three different steps each time they log on to ensure security, I’m depending on them to make sure that security is good. In my mind and in my approach, that’s not an overly effective system,” said Smathers.
Qualia’s Founder and CTO, Joel Gottsegen, also talked about some of the glitches besides the security issues of digital closing. One such problem is the missing coordination between the title insurer and the lender.
“The key is for the title company and the lender to work together in order to even enable digital closings in the first place. In order for the consumer to have a good experience you need coordination. The problem historically has been a lack of coordination between those two parties,” said Gottsegen.