- BMO's digitization of mortgage refinancing, in collaboration
with Blend's Close technology, will allow U.S. customers with
properties in eligible states and counties the ability to refinance
a home online and removes any in-person requirements to create a
quicker and more secure experience
- The enhancement is the latest example of BMO's Digital First
strategy to boost convenience and help customers make real
financial progress
- BMO is the first financial institution to complete the
transfer and pledge of an electronic promissory note (eNote) to
FHLBank Chicago's DocMagic eVault and the Mortgage Electronic
Registration Systems (MERS) eDeliver system
CHICAGO, Jan. 18,
2023 /PRNewswire/ - To simplify and expedite the
homebuying process for customers in the U.S., BMO today announced
that residential mortgage refinancing is now fully digital for
loans secured by property in states and counties accepting
recording of e-signatures and digital notaries. BMO will leverage
digital mortgage technology provider Blend's mortgage eNotes
capabilities and its Close product to allow customers the ability
to complete their mortgage refinancing from anywhere at any
time.
BMO is the first bank to offer electronic close on mortgage
refinancing in the U.S. with Federal Home Loan Bank of Chicago (FHLBank Chicago), which involves
signing mortgage documents digitally. Many e-closings still require
at least one face-to-face meeting. Now, to enhance the end-to-end
digital experience, BMO customers in certain jurisdictions can
review and sign documents to finalize a loan all online.
"BMO's digital mortgage experience is all about making the
homebuying process for our customers easy, efficient and fast,"
said Mark Shulman, Head of U.S.
Consumer Lending at BMO. "With the combination of our innovative
digital tools and support from our committed lending team, we are
able to meet our customers' expectations for speed and convenience
when refinancing a home. Through our membership with FHLBank
Chicago and partnership with Blend, we have created an end-to-end
digital experience that empowers customers with expediency and
control, while offering access to lending experts throughout the
process."
Blend's Close feature adopts a customer-first approach to
closing by:
- Providing flexibility: Allows borrowers the ability to review
and sign closing documents remotely, with the option for loan
officers to follow along and provide guidance in real time.
- Offering transparent choice: Evaluate signing options after
receiving remote online notarization eligibility information at the
time of application.
- Keeping borrowers in one portal from application to close:
Create an end-to-end experience by offering a remote signing room
integrated into the borrower app.
"We are delighted to expand our partnership with BMO through
this digital-transformation initiative," said Erik Wrobel, Head of Product at Blend. "We look
forward to continued collaboration with them as they evolve their
digital offerings to provide customers a mortgage experience that
is unparalleled in speed, convenience, and control."
Digital applications by BMO customers have soared the last two
years. Prior to the pandemic, roughly 25% of customers in the U.S.
utilized BMO's remote online notarization capabilities compared to
75% today.
This enhancement is another example of BMO's Digital First
strategy, focused on building a digitally-enabled, future-ready
bank that drives progress for its customers, unlocks the power of
its people and delivers loyalty, growth, and efficiency. This
feature also complements a host of digital home lending
capabilities and tools focused on helping its customers make real
financial progress, including BMO's online loan application and
refinancing capabilities, prequalification application, and
its mortgage calculator tools.
"The transfer of this eNote is a significant milestone for
FHLBank Chicago," said Sam Reindl,
Vice President, Senior Manager, Member Product Support, FHLBank
Chicago. "Interest in the ability to pledge eNotes as collateral
continues to grow among our members and this first pledge
demonstrates that we now have the ability to meet this growing
demand. We appreciate BMO for partnering with us to complete this
transaction and create a path for more members to begin pledging
eNotes."
To learn more about BMO's home lending programs in the U.S.,
visit https://www.bmoharris.com/main/personal/mortgages/.
About BMO Financial
Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest
bank, by assets, in North America. With total assets
of $1.14 trillion as of October 31, 2022, and a team
of diverse and highly engaged employees, BMO provides a broad range
of personal and commercial banking, wealth management and
investment banking products and services to 12 million customers
and conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
About Blend
Blend makes the process of getting a loan simpler, faster, and
safer. With its digital lending platform, Blend helps financial
institutions including Wells Fargo and U.S. Bank increase
productivity and deliver exceptional customer experiences. The
company regularly processes nearly $2 billion in
mortgages and consumer loans daily, helping millions of consumers
get into homes and gain access to the capital they need to lead
better lives. To learn more, visit blend.com.
About FHLBank Chicago
The mission of the Federal Home Loan Bank
of Chicago is to partner with our members
in Illinois and Wisconsin to provide them
competitively priced funding, a reasonable return on their
investment in the Bank, and support for community investment
activities. FHLBank Chicago is one of 11 Federal Home Loan Banks
chartered by the U.S. Congress in 1932 to promote homeownership.
Our members include banks, thrifts, credit unions, insurance
companies, and community development financial institutions
throughout our District. To learn more about FHLBank Chicago,
please visit fhlbc.com or follow @FHLBC on Twitter. "Downpayment
Plus" and "DPP" are registered trademarks of the Federal Home Loan
Bank of Chicago.
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These statements generally relate to future events, future
performance or expectations and involve substantial risks and
uncertainties. Forward-looking statements in this press release may
include, but are not limited to, our expectations regarding our
product roadmap, future products/features, the timing of new
product/feature introductions, market size and growth
opportunities, macroeconomics and industry conditions, capital
expenditures, plans for future operations, competitive
position, technological capabilities and strategic relationships.
The forward-looking statements contained in this press release are
subject to risks and uncertainties that could cause actual outcomes
to differ materially from the outcomes predicted. Further
information on these risks and uncertainties are set forth in our
filings with the Securities and Exchange Commission. All
forward-looking statements in this press release are based on
information available to Blend and assumptions and beliefs as of
the date hereof. Except as required by law, Blend does not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
View original
content:https://www.prnewswire.com/news-releases/bmos-us-residential-mortgage-refinancing-now-with-fully-digital-capabilities-301724327.html
SOURCE BMO Financial Group