The opportunity to meet consumer demands for faster property and refinance settlements has emerged as the finance industry faces continuing criticism over the time it takes to buy a new home or to refinance.
Settlement times are being reduced by up to two weeks by Lenders and Mortgage Brokers using OneStep, an application from Brisbane Regtech Leadpoint that automates document generation and sends them to borrowers for e-signing in less than five minutes.
Leadpoint founder, David Maher, says online lenders using OneStep are luring customers from the major banks with their speed and efficiency. By combining document production and e-sign into a single automated process, Leadpoint's OneStep service sets a new benchmark in digital settlement automation.
Loan and mortgage documents, which traditional lenders can take weeks to prepare because of cumbersome manual processes, are completed in minutes by OneStep clients. Using Adobe Acrobat Sign, the documents can be sent to a borrower for digital signature immediately.
Mr. Maher says OneStep reduces the standard six-week settlement period by two weeks.
Online lender TicToc and banking app UP utilise Leadpoint's technology to automate and speed up the settlement process.
Mr. Maher says the promise of faster settlements is attracting consumers to new online lenders and second-tier institutions that have updated their technology platforms.
Lenders with modern or updated loan origination platforms are the fastest adopters of OneStep. Once a loan is approved the lender's data is sent by an API to the OneStep platform which then automates the documentation and digital signing process in minutes, ready for the borrowers to view and sign their documents on any device at their convenience.
"There is no human involvement, and the entire document pack is delivered to the borrower within five minutes," says Mr. Maher. "If the borrower signs the documents immediately, the whole process will take 10 minutes."
With ten years of ongoing development, OneStep handles each state and territory's different property laws, making it a truly national offering. It also handles combined transactions such as a purchase and a refinance settlement, addresses the most complex deals, such as those involving multiple loans, borrowers and properties, and guarantors.
Mr. Maher says earlier versions of their technology had automated the document generation process, but integration with Adobe Acrobat Sign has now automated the entire process.
"Traditional banks can lose two or three weeks in getting documents prepared and signed," he continues. "Borrowers would love to get approval and be presented with the documents to sign within minutes rather than wait weeks and fight through piles of papers.
"With Onestep, their loan can be approved at 9am, and they can sign off by 9.10am."
The technology is suitable for loans for first-home buyers and owners refinancing to move up the property ladder.
"The question I'm always asked is why haven't the major banks done this themselves," says Mr. Maher.
"The truth is it's not easy. Having the right technical skills and legal and industry knowledge to deliver a complex solution for every transaction and jurisdiction is difficult. Some institutions have spent millions of dollars and failed."
Mr. Maher says he is confident consumer pressure will encourage traditional lenders to streamline their process.
"Industry criticism that banks are taking too long to approve loans and missing settlement deadlines is still ringing loud," says Mr. Maher.
"Borrowers will look for faster and more reliable services to complete the biggest transactions of their lives. The smart lenders are responding and will capture an increasing share of this lucrative market if the established players do not react."
Key Facts:
*With Onestep, home buyer loan can be approved at 9am, and they can sign off by 9.10am
*OneStep are luring customers from the major banks with their speed and efficiency.
About us:
Leadpoint Automated Mortgage Services is a legal fintech which specialises in providing innovative, secure, and intelligent national mortgage services to Banks, Mutuals and Non-Bank Lenders. Leadpoint is at the forefront of helping Lenders bring traditional home loan processes up to speed, literally!
Leadpoint's OneStep cloud based service delivers loan contract and security "Doc Packs" to Lenders and their customers to e-sign within 5 minutes of loan approval, 24/7/365. OneView keeps everyone fully informed throughout the settlement process.
