Twenty-five sets of eyes, categorized into nine different silos, all trying to contribute towards one goal. The mortgage industry has been using the 25/9/1 system for decades, and all involved can attest to the fact that it has caused untold amounts of confusion and pain.
The Nine Different Mortgage Silos Are As Follows:
Buyers, sellers, real estate agents, old lenders, vendors, title underwriters, new lenders, title companies and secondary market/investors. Each of these silos can be further broken down, as each of them usually represents more than one person. For example, appraisers, pest inspectors—attorneys, and brokers, to name a few—all fit into the vendor category.
All of these people contribute information towards the settlement statement without the knowledge of most of the other silos involved. Twenty-five sets of eyes have no way of knowing whether mistakes are being made when the different silos aren’t collaborating. And they are costly mistakes. If a lender tries to sell a loan product to a secondary market and it has incorrect documentation, it pushes back to the lender who has to give the secondary market their money back. Jamie Corbin, Senior VP of Sales at ATS Secured, explains it this way: “You are on trial for some heinous crime and have nine different attorneys, and none of them talk to each other. How do you expect them to present a case?” This level of miscommunication is what happens in the mortgage industry. It’s not just one lame horse on the trail—this process makes every single horse lame. And who goes after the weak and lame?
Fraud Is Much More Likely To Occur Where Incorrect Information Can Exist
Making an illegal “killer” profit is an easy thing to do when anyone can insert erroneous information. Who would know the difference?
Currently, the approach to deal with this issue is by banning those who have historically been known to con the system. This approach could be comparable to the old adage, “What you don’t know can’t hurt you,” as it doesn’t address the problem that no one knows what individuals are doing in the present moment. It’s treating the symptoms, not the actual problem. In Arkansas there was a title agent was held up as a model in how he managed his business. His six bank accounts were kept perfectly balanced. However, “what they didn’t know was that he had seven bank accounts,” Corbin says. “He had taken 120 million dollars, and they were only able to find 80 million.”
The mortgage industry needs a way to collaborate with the nine different silos in a way that is secure, efficient and tested. The current 25/9 system is the problem, and here at ATS Secured, we believe that there is one certain solution.
Technology has made life easier in so many different ways. People used to have to put a quarter in a payphone in order to call someone. Now, most everyone has a cell phone and can call from most anywhere.
Technology Can Be Used To Make the Mortgage Closing Process Easier and Safer As Well
This new approach could have private-vault technology that lets the different silos collaborate in a way that they never could before. Imagine if you were a vendor and submitted an invoice, and the buyer and lender could both view it simultaneously and choose to share it with the seller if desired. The people who need to sign off on it would know immediately that it is ready for signing. Across four different silos, an audit-ready file would be created because it would be secure and ready for those who need to see it.
If activities were recorded, fraud would be significantly reduced. No funds could be taken out without the appropriate people knowing about it. There are two different versions of online systems: the kind that everyone can see and the kind that is private and sectioned off. We use a private vault that is both secure and efficient.
Twenty-Five Sets Of Eyes. Nine Different Mortgage Silos. One Loan Closing Solution.
Instead of being uninformed and taken advantage of, ATS Secured’s technology makes it possible for each lame horse in the mortgage industry trail to pull together.
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.