| Go Green |
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When Prime Alliance was getting started almost ten years ago, we set a Big, Hairy Audacious Goal, a BHAG, of making the entire mortgage process paperless and electronic within the decade. It seemed outrageous at the time. Mortgage files were often judged more by weight than by relevant content, a tradition based on centuries of real estate law and practices. Yet we knew improving the member experience and increasing credit union lending efficiencies would take many bold steps, with this being the boldest of all. In October 2008 one of our customers closed the first completely paperless, all electronic mortgage. Their members applied on-line. The credit union compiled and underwrote the file without resorting to paper. The closing took paper with electronic signatures. The happy borrowers, after signing one time on a digital pad, left with their entire closing package on a USB memory stick rather than the typical three to five pound file. Slightly more than one year later this same credit union is Fannie Mae's largest deliverer of electronic mortgages. Their member experience is one of the best, their cost-to-originate among the lowest. What's the difference between paperless and electronic? Paperless loans are those that are originated, processed and underwritten without the use of a single piece of paper. The entire process up until closing is done online rather than using the traditional legal-size file favored by traditional mortgage lenders everywhere. Electronic loans go further. They are closed, funded and delivered without the use of paper. Going paperless is a step lenders everywhere can take. Going electronic requires the cooperation and participation of title/escrow companies, recording authorities and investors. Creating positive member experiences and increasing lending efficiencies are two good reasons for going paperless. There's a third, though: paperless lending is environmentally friendly, it's very green. Who would have imagined, for instance, that the mortgage industry has such a large carbon footprint? Lenders consumer up to 36,000 tons of paper per year. The Statue of Liberty weighs just 24,634 tons. Our need for paper consumes 620,000 trees each year and approximately 14 million gallons of oil. Paperless mortgage processing has a definite positive affect on our environment. All credit unions can go paperless and electronic. Prime Alliance's technology suite - the retail lending and loan fulfillment centers - were designed with this in mind. The technology aspects of going green are simple. Credit unions using Prime Alliance's Retail Lending and Loan Fulfillment Centers have all the technology necessary to take the paperless step. Prime Alliance also provides the work-flow consulting to help its customers take this important efficiency-creating step. Curious? Send us an email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . We'll be happy to show you how. |