"Navigating digitized mortgage processes during Covid-19" by Edward W. Somers (Law360)
Law360Edward W. Somers
The risks presented by the coronavirus pandemic have forced innovation in executing consumer contracts — and fast. Not least affected is the mortgage industry, which typically relies on in-person interactions for document execution to satisfy legal requirements and investor guidelines.
Office closures and social distancing has made the industry virtually dependent on electronic alternatives. Lenders and servicers adjusting to the new normal should evaluate their digital processes for compliance gaps that can cause enforcement and liability headaches. Whether those processes were in place prior to the pandemic, rolled out recently under immediate need, or are still in a planning phase, close scrutiny later is likely.