Fidelity National Financial completed its first digital real estate closing in Texas using a remote online notarization and digital-signature process.

State law allows escrow officers commissioned as online notary publics to perform fully digital closings using a combination of video technology and digital signatures. A Texas FNF affiliate used secure, remote notarization technology to connect the property sellers in Austin with an escrow officer in Pearland. To complete the transaction, several documents were digitally signed by the sellers and notarized remotely, creating a superior closing experience.

"As consumers' lives become increasingly mobile, we are evolving our service to include a broad range of digital tools that allow us to meet them wherever is most convenient." said Jason Nadeau, chief digital

[caption id="attachment_10749" align="alignleft" width="248"] Nadeau: Online notarization enables deals to close when it best fits their schedules.[/caption]

officer for Fidelity National Financial. "Remote online notarization is just one part of this wider toolset and allows sellers and buyers to close on a real estate transaction when and where it best suits their schedules."

The digital tools employed by FNF for this transaction used electronic methods to ensure the identity of the property sellers and created a full set of compliant, digitally signed documents. Following the closing, an archived video version of the remote closing experience was uploaded to FNF's secure, web-based system for the delivery and storage of escrow and title documents, becoming part of the official record tied to this transaction.

"Digital closings and remote notarization tools are key components of Fidelity National Financial's wider vision for an end-to-end digital real estate experience," said Nadeau. "By combining the very best in eClose, eSign, remote notarization and other innovations, we are moving our operations--and the industry--forward into the digital future. At the same time, we're ensuring our vast network of settlement agents, escrow officers and notaries maintain their competitive edge in an increasingly digital market."

Mortgage rates held steady after declining for three consecutive weeks, according to the “Primary Mortgage market Survey” from Freddie Mac.

“Mortgage rates remained mostly unchanged this week, while mortgage applications rose 5.3 percent from the previous week,” said Sam Khater, chief economist for Freddie Mac. “The general decline in rates we have seen recently, combined with rebounding pending home sales, hint at a strong spring home buying season.”

The key takeaways from the survey are as follows:

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• The 30-year fixed-rate mortgage averaged 4.35 percent with an average 0.5 point for the week ending February 28, 2019, unchanged from last week. A year ago, the 30-year FRM averaged 4.43 percent.
• The 15-year fixed-rate mortgage this week averaged 3.77 percent with an average 0.5 point, down from last week when it averaged 3.78 percent. A year ago, the 15-year FRM averaged 3.90 percent.
• The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.84 percent with an average 0.3 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.62 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage.

Class Valuation has made an equity investment in and is partnering with InsideMaps, a technology company using computer vision to digitize the home. This partnership allows Class Valuation to develop solutions designed to meet the needs of the evolving mortgage industry.

[caption id="attachment_8871" align="alignleft" width="300"] Detwiler: InsideMap investment is latest step to modernize the appraisal business.[/caption]

InsideMaps’ technology generates 3D tours and models of the interior and exterior of homes and generates a detailed data set. Their intuitive and affordable solution can be deployed at scale and ensure consistent, high-quality results.

“We could not be more excited about partnering with Class Valuation," said George Bolanos, founder and CEO of InsideMaps. “Class Valuation's proven execution strength and entrepreneurial speed make them ideally suited to spark industry-wide adoption of this next generation home inspection process.”
Class Valuation plans to roll out the new technology in phases, with partners, to ensure it meets the needs of lenders, appraisers, providers and regulators.

“There are many benefits of having a digital rendering of the home as we modernize the appraisal process including, but not limited to, bringing consistency and credibility to the inspection of a property. Furthermore, it provides a lasting impression of the home at the time of inspection, which provides many downstream benefits--one of the most important being fraud prevention,” said Scot Rose, chief innovation officer at Class Valuation.

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The technology is designed to enhance the valuation process. “Appraisers can focus their efforts on observing and recording property data characteristics that impact loan eligibility or drive value. InsideMaps brings much needed structure and certainty to the inspection process,” said Julie Jones, senior vice president of valuation transformation and engagement at Class Appraiser. “Training for its use in the field is well underway, and Class is focused on recruiting appraisers to its Innovation Panel, comprised of early adopters that employ the technology to improve efficiencies and credibility. Our partnership with InsideMaps is an unparalleled opportunity to drive our industry forward.”

Even some traditional appraisal challenges were overcome fairly easily. For instance, through extensive field testing, Class found that appraisers using InsideMaps were able to schedule their appointments without consideration of harsh weather conditions and were able to avoid common nuisances, such as measuring around thorn bushes or clutter.

“We know our industry is on the brink of change within the valuation space, and it will take leaders in every category to bring about the future, said Mike Detwiler, CEO and partner of Class Valuation. “We are committed to being that driving force and see InsideMaps as just one way we will help the industry move towards sustainable, long-term modernization.”

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The value of new construction starts in January advanced 2% compared to December, reaching a seasonally adjusted annual rate of $722.5 billion, according to Dodge Data & Analytics.

The slight gain followed the loss of momentum that was reported toward year-end 2018, with

[caption id="attachment_5116" align="alignleft" width="319"] Robert Murray, chief economist for Dodge Data[/caption]

construction declines of  7% in November and 10% in December. Each of the three main construction sectors in January registered modest growth.

Each of the three main construction sectors in January registered modest growth.  Residential building climbed 4%, lifted by a rebound for multifamily housing.  Nonresidential building edged up 1%, reflecting a stronger pace for its commercial building segment including large office projects in Reston, V.a., Houston, Boston, Austin, Texas, and Seattle.

Nonbuilding construction edged up 1%, helped by the start of a $1.0 billion natural gas pipeline in Oklahoma and several large electric utility projects.  On an unadjusted basis, total construction starts in January were $51.5 billion, down 12% from the same month a year ago.

The January statistics produced a reading of 153 for the Dodge Index (2000=100), compared to December’s 150.

“January’s slight increase suggests that construction starts are beginning to stabilize after the diminished activity reported at the end of last year,” stated Robert A. Murray, chief economist for Dodge Data & Analytics.  “This is consistent with the belief that total construction starts for 2019 will be able to stay close to last year’s volume.  It’s true that the rate of growth for total construction starts has subsided from the 7% annual gain reported back in 2017, but it’s still too early to say that construction activity has made the transition from deceleration to decline.”

Residential building in January was $309.8 billion (annual rate), up 4% and rebounding from its 9% slide in December. Multifamily housing bounced back 14% following its 15% December decline, and was up 1% compared to its average monthly pace during 2018. There were five multifamily projects valued at $100 million or more that reached groundbreaking in January, compared to four such projects in December.

The large January multifamily projects were led by the $150 million Watermark at Brooklyn Heights senior apartments in Brooklyn, N.Y., the $146 million multifamily portion of a $250 million mixed-use complex in Washington, D.C., and a $128 million multifamily complex in Oakland CA.  The top-five metropolitan areas ranked by the dollar amount of new multifamily starts in January were--New York, Washington D.C., Boston, San Francisco, and Charlotte, N.C.

Single family housing in January was unchanged from the reduced dollar amount reported for December, which itself was down 6% from November. January’s rate of activity for single family housing was down 7% from the average monthly pace reported during 2018. By major region, single-family housing performed as follows in January compared to December--the West, up 3%; the South Central, up 2%; the South Atlantic, unchanged; the Northeast, down 3%; and the Midwest, down 9%.

Construction starts for the most recent twelve months held steady with the amount of the previous twelve months. Residential building advanced 4% compared to the previous period, with multifamily housing up 7%, and single-family housing up 3%.