1. Digital Closings The First Step to Digital Mortgages
Chad Clifford – Director of Sales & Operations

2. Chad Nice to meet you! Career in Digital for many industries
Clifford
Career in Digital for many industries
Sales and Operations
Business Process and User Experience
Fortune 100 Enterprise & Consumer Tech
Portals & Websites
Software applications & more

3. About Pavaso Innovative Tech Company for Mortgage & Real Estate
Built the most capable digital closing platform in the industry
Closed thousands of loans to date
Unique digital eco-system with tremendous value
CFPB 2015 eClosing Pilot (550+ live loans, advanced category)
Won Best Practices Award from Credit Union Journal with Mountain America Credit Union

4. Today’s Agenda Food for Thought The Changing Landscape
Digital Closings
Roadmap for Going Digital
Questions

5. Let’s talk about today’s closings…
Food for Thought
Let’s talk about today’s closings…

6. Today’s Customer Experience

7. Crazy Facts Single transaction = 1,285 sheets of paper
~ 5.8 million homes purchased in 2016
7,453,000,000 (billion) pieces of paper last year alone
1 Tree = 8335 sheets of 8.5” x 11” paper
~ 900,000 trees for 2016 closings

8. Why are we still closing this way?
Let me ask you…
Why are we still closing this way?

9. The Times They Are A-Changin'
Forces from a new market landscape

10. Largest generation is U.S. history with 83.1 million of the population
Affinity for technology is reshaping retail as they turn to brands that offer maximum convenience at the lowest cost
Embrace & Define the “Shared Economy”
2X more likely to purchase from a brand based on social and/or environmental impact

11. It’s time to ask yourself…
Does your borrower experience align with ANY of the needs of this changing market?
Can your operations deliver better profitability at a lower cost?
How can you provide proof of a great experience if questioned?
What is your long term approach to keeping borrowers loyal?
How long do you think your business can outrun paper?

12. An easy entry-point into a better way of doing business
Digital Closings
An easy entry-point into a better way of doing business

13. digital closing Let’s define it [dij-i-tl kloh-zing]
The facilitation and execution of a transaction through the use of digital technology that minimizes or eliminates the use of paper and its restrictive processes.

14. Clarifying Terminology
Digital Closing, AKA…
eClosing
Electronic Closing
Hybrid Closing
Digital Mortgage, AKA…
eMortgage
eNote/eVault

15. eSign is not the same as Digital Closing
Is just one component of digital closings
Doesn’t provide quality control or other benefits of digital closings
Simply replaces a pen

16. Digital Closings in the Mortgage Process
Application
LOS & Docs
Pre-Closing
Closing
Post-Closing

17. Digital Closings in the Mortgage Process
What most people think of as a Digital Closing
Application
LOS & Docs
Pre-Closing
Closing
Post-Closing

18. Digital Closings in the Mortgage Process
What a Digital Closing actually covers
Application
LOS & Docs
Pre-Closing
Closing
Post-Closing
Members can:
Review
Accept
Get education
Ask questions
eSign
eNotary
Mobility
Quality assurance & error prevention safeguards
Real-time compliance checks
Final package available to all, moments after closing
eNote/eVault
eRecording

19. Digital Closings in the Mortgage Process
What a Digital Closing actually covers
Application
LOS & Docs
Pre-Closing
Closing
Post-Closing
Global Capabilities
Centralize & standardize the process and transaction for everyone
Single location for all stakeholders of the transaction
Access from wide variety of devices
Easy-to-use technology, not just for Millennials
Consolidate communication
Collaborate with business partners
Setup and design any document for digital delivery & consumption
Automate & standardize Consumer education
Secure messages, chat & document delivery
Ensure delivery, receipt & acknowledgement of documents
Quality control measures for consistent, complete closings
Audit Log for compliance proof

20. Did you know?
Mortgage stakeholders can still realize at least 90% of the benefits from digital closings even if the actual closing is 100% paper?

21. Types of Digital Closings
The right digital closing platform will provide flexibility for any of the 4 types of closings that can occur today.
Paper
(the traditional closing today)
Hybrid
(part digital, part paper)
Digital
(fully digital & eSigned packages)
eNote
(Using SMART Docs®)

22. How does it work?
Produce documents in your existing production software
Securely share documents with everyone involved
Get status updates as each stakeholder prepares for closing
Digitally close in any of 4 types of closing
Keep customers for life with tools & other enhanced services
Loan Origination System
Digital Delivery of
ANY DOCUMENT
Pre-Closing
Closing
Post-Closing
Borrower review (docs & educational materials)
Touch-Enabled Devices
Borrower access to closing documents
Upload or
Integration
eSign
Borrower accept/ acknowledge
and even eSign
eVault
Closing package assembled by each stakeholder
Title Production System
eNotary
Customer for life program
Borrower communication with
any stakeholder
Scan & Digitize “Papered-out” Docs

23. MASSIVE Change in Perspective
The Borrower becomes the focal point, communicating from one place to all parties
BONUS! Each stakeholder is connected with the other stakeholders in one place
Lender
Title Company
Real Estate Agent

24. What do they do for you? Save hundreds per loan Speed Up & Save Time
Improve Accuracy & Efficiency
Boost Borrower Satisfaction
Distinct Market Differentiator

25. DIGITAL CLOSINGS are the FIRST STEP to Digital Mortgages
You must have digital closings in place to produce eNotes

26. Examples of People Experiencing Digital Closings
This is Real Life
Examples of People Experiencing Digital Closings

27. Mountain America Credit Union
“What I liked most about using Pavaso was the fact that the technology was, I feel, up with my generation.”
Consumer satisfaction & empowerment
Saved the need to hire 4 additional post-closing resources
Fund loans the same day of closing
Tyler Clark
Millennial homebuyer

28. Residential Mortgage Corp.
“It gave me a high level of comfort to be able to read through all of my closing documents in the comfort of my own home. I had time to sit and read everything before my closing date, which took the pressure and stress away from the process.”
Consumer satisfaction & empowerment
1st eClosing in North Carolina
1st Hybrid loan purchased by Wells Fargo from Pavaso
Jacqueline Vaz
First time homebuyer

29. Chief Operations Officer
Member First Mortgage
“Making the closing process digital is the ultimate way to serve our members at the highest levels of transparency, efficiency and ease of experience.
Our 2017 goals include executing eNotes with video notarization, and transferring to an eVault by the end of the year.
By using the hybrid model now, the first step is easy for both Member First Mortgage and our investors; and the benefits to the borrower are tangible.”
Carmen Sherman
Chief Operations Officer

30. Forming an Achievable Digital Roadmap
Let’s Talk About You
Forming an Achievable Digital Roadmap

31. Look for a platform that…
Brings ALL parties together & makes member part of a team with real estate agents, attorney, title, banker, etc.
Supports your business partners as much as you
Provides flexibility in closing types
Allows for open integrations & is vendor neutral
Conforms to industry standards (MISMO, UETA, etc.)
Provides eNote/eVault capability (even if starting with hybrids)
Engages consumer during entire homeownership lifecycle
Ability to remain in front of the homeowner will help dramatically increase repeat business from the industry’s current 16%
Lender
Title Company
Real Estate Agent

32. A Digital Roadmap Prepare Pilot Rollout Promote it! Post-Rollout
Change in culture
Align business partners
Touchscreen Hardware (if desired)
Pilot
Start with one location
Train & Implement
Document Lessons-Learned
Refine Process & Apply Lessons-Learned to Rollout
Rollout
Determine order of locations for rollout
Train-the-Trainer to stack multiple locations and reduce rollout duration
Conduct training & complete implementation
Promote it!
Competitive Advantage!
Real Estate Agent educational sessions
Member marketing & advertising
Press, Press, Press
Post-Rollout
eNote/eVault planning & prep
Determine ancillary integrations for greater efficiency
Long term enhancements considered for development

33. REMEMBER…the only stupid question is the question that is never asked!
Any Questions?
REMEMBER…the only stupid question is the question that is never asked!

34. Chad Clifford – Director of Sales & Operations cclifford@Pavaso.com
Thank you
Chad Clifford – Director of Sales & Operations