The traditional real estate closing is getting a modern update. The digital transaction process is not only a convenience for our customers but also brings efficiency, reliability, and affordability with the added benefit of document security for lenders and title agents alike. The real estate closing process has been relatively unchanged for decades.
Recent changes to state laws and regulations have enabled our industry to establish innovative digital processes that empower our customers and provide them with a streamlined closing experience.
FNF is committed to helping agents with this transformation of digital closings as they happen in each state.
Our agents enjoy access to the FNF Digital Transaction Team which provides:
If you haven't listened to our recent podcast episode on digital payments, you won't want to miss it! Jason Nadeau shares how you should navigate receiving payments in the digital age.
Title industry trends continue to evolve, especially the popularity of digital depository applications such as venmo, paypal and zelle. these peer-to-peer payments are replacing the traditional banking and credit infrastructure such as paper checks, wires, and certified funds. millennials currently make up the fastest-growing segment of buyers today, according to a recent National Association of Realtors report. Additionally, according to a study by NerdWallet, 94% of millennials use mobile payment apps compared to 87% of Gen Zers, 88% of Gen Xers, and 65% of baby boomers.
Given this trend, we had a discussion with Cathy Ceci, our FNF National Agency Audit Director and regarding these peer-to-peer payments and how these are not acceptable depository and disbursement platforms for real estate closings. Our audit program, for our FNF Family of Companies, tests for these applications as part of the escrow review. If found to be in use, the risks are discussed at the completion of the audit.
Here are a few important points:
Attached for your convenience are documents that Jason Nadeau, FNF’s Chief Digital Officer, who Chair’s ALTA’s Digital Process Workgroup, produced on this topic as well as a podcast that further explains what to watch for and what are the current best practices.
As we strive to continue to provide information in understanding potential risks to your escrow account, we encourage you to review the above attached information and include it as part of your agency’s escrow account controls.
For more information on why we need digital real estate transactions, and other information to share with your employees and customers, please check out these great FNF videos:
Digital Closings 101.1
Electronic Signatures
Digital Closings 101.2
Hybrid vs. Digital Closings
Digital Closings 101.3
Remote Online Notaries
