Q&A session with Mike Lawson @ CUbroadcast and Omar Jordan, Founder & CEO @ LenderClose
Q: Some state and government offices have started temporarily closing. What is the impact to credit unions and their ability to serve members?
This is huge. The paradigm has shifted. It feels as if we’re forced to make radical decisions. But it’s OK. We can do this together. This is where partnerships matter the most. The collaborative spirit in credit unions has shined immensely. And LenderClose is in a unique position to be a hub for our partners.
Yes. We are hearing about some counties shutting down across the country. This impacts record retrieval for title searches. Some counties may not have online records, some have partial records. This impacts the ability to deliver a title report to credit unions who lend in counties that are affected.
The other element to this? The credit union’s ability to record or release their lien by filing mortgages. If counties are closed, that will cause delays.
There are some solutions that can be implemented as soon as today. One example is Lien Protection Policies. Maybe you’re wondering: what is a Lien Protection Policy?
Ask yourself a question: why do we do a title search on a home equity loan, or a mortgage refinance? Isn’t it to ensure the credit union is in the right lien position?
A Lien Protection Policy guarantees your lien position without having to conduct a title search. The policy allows you to forgo the title search process and it’s immediate. In times like this, when volume is at an all time high, efficiency matters. Credit union members need decisions made faster than ever.
Additionally, as county recorders shut down we’ve seen that are only accepting eRecorded mortgage filings. LenderClose has a solution and can help you start implementing this into your credit union today. Every mortgage or home equity loan should be electronically recorded if the county allows it. There are over 1900 counties nationwide which accept eRecording.
Q. We've discussed remote online notarization (RON) for months now. This seems like a time where RON really matters. Can you touch on that?
We’re hearing about credit unions shutting down lobbies and only allowing members by appointments. I think that’s smart and decisions like this are saving lives right now.
The expectation has shifted. Providing services to members doesn’t have to be face-to-face. For states which have remote online notarization (RON) passed, I encourage credit unions to start implementing RON solutions.
If your state doesn’t have RON passed, don’t ask your members to come in unless you absolutely must. A remote notary signing solution sends a notary to your member’s home. Remote, member interaction is necessary.
Credit union members need their credit union. Here are some of the things our partners are already implementing:
Isolate your teams in separate buildings. I’m a huge fan of centralizing lending, and other departments, but with this pandemic, we need to make sure operations don’t come to a halt in the event of internal exposure. So, we recommend considering divide your teams into 3 to 5 separate locations.
If you don’t have POS online loan applications. What do you need to deploy it?Asking members for pay stubs and W2 can be done electronically and securely.
Mortgage signings don’t have to happen at the branch if RON isn’t an option. Think about sending a non-employee notary public to your members’ homes. They call those signing agents. There’s an entire industry out there.
For loans which CUNA and the CFPB allows alternative valuations such as AVMs and eValuations. Please consider those before ordering an appraisal.
Q: Where can someone start? Who does a credit union need to call in order to put some of these measures in place?
Credit unions are great at networking. Reach out to your network. The collaborative spirit of credit unions shines in moments like this.
Reach out to me directly or any of our team members. We’re passionate about your success and here to collaborate to assure your continuing to meet your the needs of your members.
And, stay safe. It’s OK to feel like things aren’t normal. Because, it’s not normal right now.
I’ll end it with this: remote interaction could be the new normal for awhile so let’s make the adjustments we need to make in order to continue serving our members and remain safe.