Smartmove has held serious talks about an electronic signature technology that could reduce mortgage settlements by five days.
Mortgage processing firm First Mortgage Services plans to launch its technology once new legislation is introduced to allow mortgage documents to be sent and ‘signed’ electronically.
The new legislation is expected to pass later this year, said the firm’s general manager of business development and relationships, Chris Evans.
Mr Evans told The Adviser that the web signing system used technology similar to that used in internet banking and that it could mark the end of having to print and post documents.
“It can take the paper and time out of a lot of their processes. I reckon this will take five days out of the current process,” he said, adding that First Mortgage is currently in talks with five or six lenders.
Mr Evans said the system would be ready to go by March – and that First Mortgage’s parent company already used similar technology in the US and New Zealand.
Smartmove director Simon Orbell said Smartmove was very interested in the technology and had been in detailed discussions with First Mortgage since last August.
“I think it’s going to be one of the biggest innovations that the industry will have had in the past three or four years,” he said.
Mr Orbell told The Adviser that customers would be less likely to back out of loans if brokers could offer them a faster and less frustrating settlement process.
“Smartmove would be happy to pilot the technology,” he said. “If we were in a position to drive this technology, we would be very happy to pilot it with our customers and to help the industry move ahead because I can see massive benefits for the future.”