“Rapid e-Closing,” the solution for social distancing
NEW YORK, NY – As this global pandemic continues, private lenders, nationwide, are faced with the challenge of how to safely and quickly close loans in these lockdown conditions. Private Lender Law, the practice group of LaRocca Hornik Rosen & Greenberg (LHR&G), announced today a revolutionary service that enables remote loan closings that will offer a unique solution for traditional in-person transactions.
With the use of their Rapid e-Closing process along with DocuSign®, Private Lender Law, now has the ability to offer electronic closings that require minimal wet signatures.
“While DocuSign® is a technology that has always been available, it hasn’t been applied to the specialty bridge/term lending space,” said Jonathan Hornik, Esq. and Managing Partner of the Private Lender Law group. “What we’re doing is simply harnessing this readily available service by applying the special coding to our documents. This will then offer us the ability to execute closings, minimizing the time counterparts need to be present.”
Essentially, if you consider the average closing consists of 15 documents, with the Private Lender Law Rapid e-Closing process, 12 can be signed electronically, with only three wet (live) signatures required: The security instrument (which is the mortgage, the deed of trust or the deed to secure debt), the note (which needs to be notarized), and the business e-closing affidavit.
With the use of this DocuSign® method, paper clutter is also eliminated by forgoing the need for printing, faxing, and scanning forms. Sending forms electronically means lenders save time in the process as compared to express shipping physical documentation to the necessary parties. DocuSign® can be accessed from any electronic device. And private lenders now have the ability to operate remotely, eliminating the need to set up in-person loan closing meetings.
Jonathan Hornik summed it up best by saying, “With this new normal, we don’t see social distancing going away in the near future. So, for us, it’s all about using our Rapid e-Closing capability, so both lenders and borrowers have minimal contact.”
Private Lender Law is also offering the private lending community relief with the following new services:
Shutdown Period Modifications
Private Lender Law is also providing support to lenders impacted by this sudden economic downturn. With Shutdown period modifications, Jonathan Hornik’s team is able to offer a variety of emergency modifications to loan documents to accommodate borrowers’ inability or failure to pay during this interim period.
Long-term Forbearance Loss Mitigation and Workouts
In the coming months, lenders will lack the necessary funds to pay their loans. To avoid having their default rates tick up above a certain percentage, Private Lender Law is ready for any scenario with an accelerated process to prepare and complete these loan modifications.
About Private Lender Law
As a partner of New York-based LaRocca, Hornik, Rosen & Greenberg, and Chair of its Private Lender Group, Jonathan Hornik launched PrivateLenderLaw.com which provides comprehensive real estate legal services nationwide for private lenders. From New Hampshire to Honolulu, their attorneys have extensive expertise and experience in 24-hour closing capabilities, topical legal research, and analysis, nationwide title review, master loan purchase agreements, private placements, co-lender participation agreements as well as other legal services. With a presence in all 50 states, the Private Lender Law Practice Area also has an unparalleled understanding of state-specific requirements to help ensure their clients are always in compliance with all applicable local laws, rules, and regulations.