Selling mortgage paper without the paper: electronic delivery is changing the way lenders interact with the secondary market.

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Influence of electronic delivery on mortgage

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Selling mortgage paper without the paper: electronic delivery is changing the way lenders interact with the secondary market.

For much of the past decade, mortgage lenders have been slowly but steadily working toward the all-electronic mortgage. While progress has been slow, there are some compelling reasons why lenders are investigating paperless solutions today. The benefits were quantified in 2004 when CC Pace and The STRATMOR Group conducted a time-and-motion study on behalf of the Mortgage Bankers Association (MBA) showing that lenders could save about $250 per loan by getting rid of the paper. [??] This was no doubt interesting to lenders, but it was even more interesting to another group of industry players--the investors. In fact, buyers of at least 70 percent of the non-agency paper sold into the secondary market today are already wired to accept deals electronically. On the ...

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