Optimizing and Securing the Mortgage Payoff Process

Learn how title agents can increase the security and efficiency of their real estate closings with the right tools and latest best practices.

Optimizing and Securing the Mortgage Payoff Process

Learn how title agents can increase the security and efficiency of their real estate closings with the right tools and latest best practices.

A person using a calculator and computer.Optimizing and Securing the Mortgage Payoff Process
Written by:

Matt Kilmartin

Read time:

5 minutes


Real Estate

Published on:

May 31, 2022

For many, the excitement of finding the perfect next home to buy or deciding to sell their property to explore a new opportunity is quickly quelled by the complexity of the closing process that follows.

Known for a need for high attention to detail; a strict orchestration of players, paperwork, and funding; and a heavy dose of professionalism and experience, shepherding a closing is not an easy task. This can be true for even experienced title and escrow agents.

As the saying goes, “If it was easy, everyone would do it.”

While today’s closings are defined by the growing role of technology, there are also other evolving best practices and new tools that title agents can use to optimize and secure the mortgage payoff process and fight back against some of its growing risks, including mortgage fraud.

This article will introduce some of the key practices the CertifID team has heard from our customers to help ensure your team has the latest information you need to maintain your competitive advantage.

Securing the mortgage payoff process

Real estate professionals have an obligation to their customers, their fellow professionals, and the financial and regulatory institutions they work with to handle the process securely and efficiently.

Here are some of the best practices that your team should consider:

Use new tech to streamline your processes

If you’ve been hearing more about e-closings, it is likely because more lenders and agents can complete these digitally enabled closings. In 2020, 42 percent had implemented e-closing software, and this percentage is continuing its strong upward momentum. 

Whether used to facilitate completely remote and electronic transactions or in a hybrid model, title agents can use these solutions to speed up key aspects of the closing process, simplify data collection, and streamline documentation preparation and finalization. There are also many jurisdictions, notaries, and financial institutions that accept e-signings and e-notes.

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Practice thorough identity verification.

The rise in digital tools that make communicating with colleagues and clients faster and easier can also introduce significant risks to the process. In fact, business email compromise or account spoofing is on the rise, making it possible for clients to be misled to direct account funds to the wrong destination or for busy title company employees to accidentally misread an email address or phone number.

This is why it is vital to always independently confirm the contact information for the mortgage lender, clients, and other parties to the transaction and for routing numbers and other account details to be verified and confirmed by a trusted party firsthand.

Use end-to-end encryption to verify wire transfer data

Give your customers peace of mind and reduce the risk of wire fraud with the help of an industry-leading platform that creates an end-to-end, encrypted tunnel to collect bank account information. 

CertifID first requires each party to verify their identity before bank account information is collected, limiting title company liability and lowering the risk of potential lawsuits that could be financially and reputationally damaging. 

Verify payment details via a trusted source

With the average mortgage balance reaching approximately $229,000 in 2021, criminals are willing to use any tactic to exploit the mortgage payoff process in hopes of coming away with a big payout. 

Go the extra mile and verify payoff details with a trusted source such as CertifID, which can independently verify the data on your behalf. 

Click to register for the To Catch a Fraudster webinar series from CertifID

Find the sweet spot between efficiency and security.

With a tight housing market and cybercriminals increasingly motivated to take advantage of weaknesses in the closing process, the stakes are getting higher for title agents to facilitate a secure and smooth transaction and mortgage payoff process.

That is why your team needs to not only be on the lookout for the cyberthreats of tomorrow but also take the necessary steps to protect your brand and your customers from the risks of mortgage payoff fraud and identity theft today.  

Want to learn more about how organizations like yours are fighting back against the risk of fraud? Make sure to check out CertifID’s To Catch a Fraudster web series here.

Matt Kilmartin

VP of Sales

Matt has over a decade of experience bringing disruptive Software-as-a-Service (SaaS) solutions to market in the automotive, MarTech, and real estate industries. He excels in high-growth tech companies with a passion for building and leading sales teams that deliver a memorable, consultative experience to prospective clients.‍

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