4 Myths Every Company Needs to Dispel about SMART Docs
It’s no secret—the use of SMART Docs is growing dramatically in the mortgage industry. And for companies that have switched to SMART Docs, the benefits have been quickly apparent.
Yet there are a number of myths about SMART Docs that keep some lenders from following suit. We’ll go over each of them below—and we’ll also give you the facts.
Myth #1: PDFs Are Just as Good as SMART Docs
The enormous differences between PDFs and SMART Docs cannot be overstated. To put it simply, PDFs are merely electronic copies of printed documents—similar to a picture—while SMART Docs are completely digital documents that contain nothing but data. And when it comes to value, SMART Docs win hands down, every time.
To use PDFs, lenders need optical character recognition (OCR) tools to “scrape” the information they need off documents. But OCR doesn’t capture all the data; humans are still needed to visually inspect each document and retype data they see into their system of record. SMART Docs, on the other hand, can be read by any system with 100% accuracy, without the need for OCR or human eyes.
Myth #2: Not All Documents Can be ‘SMART’
Many lenders think only the note can be a SMART Doc, maybe because most eClosing providers only provide the note as a SMART Doc. Indeed, eNotes are an important piece to paperless closings. However, lenders can create MISMO Category One SMART Docs for all loan documents.
The benefits of being able to generate any document as a SMART Doc are huge. It empowers lenders and their partners to perform due diligence and compliance reviews 100% electronically on an entire loan file. The process takes only seconds, too.
Myth #3: Adopting SMART Docs Takes Too Much Work
This could be true if you don’t select the right SMART Doc provider. But with an eClosing partner like SigniaDocuments, adopting and implementing SMART Docs is a breeze.
That’s because we also offer other mortgage services based on your needs, such as application, underwriting and due diligence support, and we understand how SMART Docs can be integrated into these additional services. That makes it simple to team up and create a digital mortgage process that works for your organization—from the production stage and beyond.
Myth #4: Switching to SMART Docs is Costly
Because PDFs are far more time-consuming and error-prone than SMART Docs, the investment in SMART Docs pales in comparison to the cost of not adopting them.
Think about the amount of time and money spent on having your staff review loan documents manually for data that OCR tools can’t pick up. Or consider the fact that PDFs which require a borrower’s signature must be tagged and inspected manually, which not only creates additional work, but also increases the risk of errors.
SMART Docs eliminate these tasks. And because SMART Docs are completely digital and include a secure record of when they were created, modified and transmitted, pre-close and post-close audits take only minutes.
Taking the First Step
At SigniaDocuments, we’re seeing a significant increase in the demand for SMART Docs. Especially since the start of the COVID-19 pandemic, consumers have been asking for more digital processes. It’s simply better business to use SMART Docs, especially if your eventual goal is to deliver a true eMortgage—which we believe it should be.
Now that we’ve dispelled the myths associated with SMART Docs, why not take the first step toward implementation? Give us a call at 1-877-7SIGNIA or drop us a note at Info@SigniaDocs.com. You’ll be pleasantly surprised by how easy it is to switch