FOUNDER AND CHIEF EXECUTIVE OFFICER, DOCMAGIC
In 1988, Dominic Iannitti started DocMagic out of frustration with the manual process then in use by lenders to prepare mortgage closing documents. He tells it this way: "The deciding factor was that I literally became fed up with the inefficiencies within my then-employer's mini-mainframe-based IT department. It seemed absolutely ridiculous to me how slow and inefficient they were."
He says. "There was little if any technology when I started in the business unless you count the IBM Selectric typewriter. When I started, applications were taken on paper with pencils. Every bank had their own set of required closing documents, and they were assembled before the close by hand. It was a very manual process. You would pull the forms off the wall, stick the forms in a typewriter, then readjust, type some more, readjust, etc."
So Iannitti helped design a system built for PCs that would address the problem. But sometimes change isn't always welcome. He recalls that back then, "the IT department convinced the owner not to take the chance on new technology. So I left and started the company."
His company has come a long way from those early days. Back then, the idea was to design a system that would automate the drawing of compliant closing documents and ensure that the documents were fully compliant with the law. But moving well beyond that early mission, DocMagic has become a leading provider of fully compliant loan document preparation, compliance, eSign and eDelivery solutions for the mortgage industry. And it appears the industry is finally starting to catch up with them on that front.
On Jan. 30, the Department of Housing and Urban Development (HUD) issued a Mortgagee Letter that says the Federal Housing Administration (FHA) will now treat electronic signatures as equivalent to handwritten signatures. This sets in motion further adoption of completely paperless eMortgages. This is something for which DocMagic has been preparing for some time.
As Iannitti said in a press release applauding the FHA move, "We have offered our clients the tools they need to go fully electronic for over a decade. We anticipate that they will begin using them in earnest now that the government has clarified its position on eSign."
Today, there's no question DocMagic has evolved well beyond those early PC days and today faces a time when compliance at closing has become a vastly more complicated proposition. The company's...