DETROIT—Quicken Loans, the Detroit-based mortgage lender, announced it had become the first mortgage lender to complete the mortgage process in Michigan using remote online notarization. This electronic mortgage closing was completed using the Nexsys Clear Sign eClosing platform from Nexsys Technologies, a Detroit-based financial technology company serving mortgage origination and closing.
In a remote online notarization e-closing, the consumer and the notary perform a mortgage closing digitally from separate locations using the internet and an audio and video connection. The fully digital process eliminates the need for the traditional pen-and-paper-intensive closing process. Currently, 22 U.S. states permit such closings.
“What’s most exciting for me are the possibilities that this new technology opens for homebuyers and those looking to refinance here in our home state,” said Jay Farner, CEO of Quicken Loans. “Imagine a homebuyer who is halfway across the country on a vacation or business trip being able to close the mortgage for their family home, or a busy nurse who only has a very short time window that doesn’t allow them to leave their workplace. I can’t wait to see all the ways we continue to make the mortgage experience easier for our clients in Michigan and throughout the country.”
Michigan’s first e-closing was a refinance transaction for a metro Detroit homeowner that was completed by Quicken Loans, the nation’s largest home mortgage lender. Amrock Inc., a provider of title insurance, property valuations, and settlement services, was the title and closing agent for the mortgage. The notary who completed the closing was Amrock’s Julie Felts, the first electronic remote notary to be approved and registered by the state of Michigan.
“Michigan took proactive measures to allow both e-notarization and remote online notarization in December 2018, and Nexsys worked closely with the Secretary of State in getting our platform fully approved to accept closings,” said Michael Lyon, executive vice president of Nexsys Technologies. “We are proud and humbled that Clear Sign was the first e-closing platform to close a RON transaction in Michigan. This was particularly important to us, since it’s our home state. Now we’re setting our sights on neighboring states and won’t slow down until all our clients have the ability to close their mortgage from anywhere, anytime.”
Michiganders who work with Quicken Loans and choose Amrock as their title company can close their mortgage with a remote e-closing if their refinance loan meets eligibility requirements. Remote closings are expected to be available for purchase loans in the state in 2020.
There are three types of e-closings: hybrid, in-person electronic notarization and remote online notarization. In a hybrid e-closing, the consumer and the notary meet to complete a mortgage closing with both traditionally and digitally signed documents. An in-person e-closing is similar to the hybrid process, but has no pen-signed paperwork. The signing agent meets with the consumer face to face and all documents are signed digitally on a tablet or laptop. Depending upon state legislation, consumers in any state can work with Quicken Loans, Amrock and Nexsys to complete an e-closing, although the type of e-closing available to them is dependent on individual state legislation.
Nexsys launched Clear Sign, an e-closing platform designed to improve the speed and efficiency of mortgage closings, in April 2019. Since then, more than 60,000 mortgages have been e-closed using Clear Sign, making it the number one e-closing platform based on Mortgage Electronic Registration System (MERS) registered notes. In addition to Clear Sign, Nexsys created Clear HOI, a platform that provides lenders and insurers a way to instantly and accurately verify homeowners insurance coverage, resulting in improved closing times and processing costs. Nexsys’ first tool, Clear Path, brings together insurance, appraisal and closing documents in one location where they can be accessed by all who need them during the mortgage closing process.
Quicken Loans closed nearly half a trillion dollars of mortgage volume across all 50 states from 2013 through 2018. In late 2015 Quicken Loans introduced Rocket Mortgage, the first fully digital mortgage experience. Today, 98 percent of all home loans originated by Quicken Loans use Rocket Mortgage technology. Quicken Loans moved to downtown Detroit in 2010 and today employs more than 17,000 people in the city. The company also has web centers in Cleveland, Ohio and Phoenix, Ariz. Quicken Loans also operates a centralized loan processing center in Detroit, as well as its San Diego-based One Reverse Mortgage unit.