We are considering paperless mortgage files. The applicant would complete an application through traditional means. The application would then be scanned and retained electronically in accordance with retention regs. Other than possible collection issues for defaults, I can think of no other reason not to do this. We would ultimately destroy the original loan documents but retain an electronic file of all documents. Does anyone have any experience with this? Can anyone provide feedback as to pros and cons? Thanks for your help.

1. Check with investors to be sure they will accept electronic copies should you have to rebuild the file for them for any reason.

2. Check any applicable state law. IN's would be found at IC-26-2-8.

Our dealings with Chase and Citi: would take online closing package submissions BUT they require the original Note, Mortgage and Final Title Policy be sent to them.