Snapdocs and Mortgage Cadence partner for digital closings

Two weeks after teaming up with Freddie Mac for an electronic promissory note program, Snapdocs will form a business partnership to facilitate digital closings for origination system provider Mortgage Cadence.

The new union will allow lenders and borrowers to close loans using Snapdocs’s technology while working directly on Mortgage Cadence’s cloud-based loan origination platform, where the documents involved will be securely stored. The two companies otherwise declined to discuss the particulars of the partnership.

Snapdocs achieved unicorn status back in May following a Series D fundraise and aims to bring better connectivity to the industry. While the pandemic greatly accelerated the use and adoption of technologies, fragmentation and change management are long-standing barriers to full digitization in lending that can be addressed through better collaboration between industry vendors, according to Snapdocs CEO Aaron King.

“If you zoom in a bit, those problems generally manifest in three ways: Compatibility and tools that don’t work together, or aren’t made to work together. The challenge lenders face in understanding just how digital any closing can be. And the lack of a single standard process for closings of all types — wet, hybrid or full eClose,” King said in a statement to NMN. “If you fix those three things, there’s an easy path to digital closings.”

Earlier this week, SnapDocs also announced the development of its eVault, a product for the secure creation, transferral and storage of eNotes and other documents. The fintech plans to make the offering available in 2022 and hope it will be able to address some challenges it’s seen in adoption while doing so.

“eNotes provide some of the most significant cost savings in the digital closing process,” King said. “But the workflow to produce and manage eNotes has been so cumbersome that few lenders are doing them, and fewer have scaled. Fundamentally, eNotes are a fragmentation problem, meaning there are multiple parties that all need to adopt in order for it to work.”