Two weeks later team up with Freddie Mac for an electronic promissory note program, Snapdocs will form a business partnership to facilitate digital fencing for origination system provider Mortgage Cadence.
The new union will allow lenders and borrowers to close loans using Snapdocs technology while working directly on Mortgage Cadence’s cloud-based loan origination platform, where the documents involved will be stored in completely safe. The two companies have also declined to discuss details of the partnership.
Snapdocs achieved unicorn status in May following a Series D fundraiser and aims to bring better connectivity to the industry. While the pandemic has dramatically accelerated the use and adoption of technology, fragmentation and change management are long-standing obstacles to the full digitization of lending that can be overcome through better collaboration between industry providers, according to Snapdocs CEO Aaron King.
âIf you zoom in a bit, these issues typically manifest themselves in three ways: Compatibility and tools that don’t work together, or are not designed to work together. The challenge lenders face in understanding how digital any fence can be. And the lack of a single standard process for closures of all types – wet, hybrid or full eClose, âKing said in a statement to NMN. “If you fix these three things, there is an easy path to digital closures.”
Earlier this week, SnapDocs also announced the development of its eVault, a product for the secure creation, transfer and storage of eNotes and other documents. FinTech plans to make the offering available in 2022 and hopes it will be able to address some of the challenges faced during adoption.
âENotes offer some of the biggest cost savings in the digital fence process,â King said. âBut the workflow to produce and manage eNotes has been so heavy that few lenders make them and fewer have evolved. Basically, eNotes are all about fragmentation, which means there are several parts that all of them need to embrace in order for this to work.