The top technology executive at DocMagic says there is no time like the present to prepare for the future.
DocMagic provides document generation, automated compliance, an eSign platform, and eMortgage technology for the mortgage industry. The company was founded in 1987 and is headquartered in Torrance, California.
Chief Technology Officer Michael Morford is responsible for product development, enterprise architecture, and platform integration. He sat down with The Mortgage Note to talk about the two patents DocMagic was recently granted and how they give the company exclusivity to technology that can automate document preparation and digital closing workflows.
Morford said one of the patents is specific to the identification of loan documents, and the second one is specific to the enablement of those documents.
“Combined, it represents one of the higher friction areas of trying to have a digital mortgage, which is the enablement of third-party documents,” Morford said.
Both patents are already integrated into DocMagic’s AutoPrep solution, which converts third-party documents into e-ready files for eSignature, eNotarization, and eClosing.
The two patents from the United States Patent and Trademark Office are Patent No. 12,175,785 and Patent No. 12,169,976.
Morford said to obtain the patents, they had to describe the concept of what it means to identify a document by looking at pattern recognition, applying technologies that were available at the time they applied.
They then outlined through flow diagrams and descriptions what they were doing with that content once it was identified, and how it is taken from finding the document to identifying where people need to interact on that document. For example, signature lines.
Morford said to complete the patent process, they had to use current language, but the wording is open-ended enough so that as technology changes, they can adapt.
“There are provisions with a patent to keep it open for further innovation to go inside it. And we are keeping those options open right now so we can continue to define new aspects,” Morford said.
It took about three years to obtain the patents.
“It’s a lot of kind of start and stop, being a flurry of documenting everything, then going through the revision process with our legal counsel and outside attorneys for patents, and then submitting it,” Morford said.
Morford said being granted the patents highlights everything DocMagic has been doing for the last 38 years and the people who work for the company. Some employees have been there since DocMagic was founded.
“Not all of them share on the innovation side, but they certainly are the lifeblood of the organization, and so really, it was just a celebratory moment for the entire company,” Morford said of being granted the patents.
Morford said DocMagic serves small shops that do a couple of loans per month to large, top-tier lenders. Smaller companies rely on them to provide technology tools they can’t build themselves.
When asked what advice he has for people who may be a little bit nervous about jumping on the artificial intelligence bandwagon, Morford said companies that are not using AI risk becoming non-competitive.
“You have to do something. I think one recommendation is, ‘Small change adds up to big wins.’ So don’t try to tackle the biggest problem. Don’t try to solve the world. Take advantage of small things. You know, low risk, high data,” Morford said. “Take advantage of those to familiarize yourself or acclimate yourself to AI. You’re going to improve your team. You’re going to be more efficient.”
Morford said industry professionals will be happy they have AI tools available when it’s time to scale up after the current mortgage slump passes.
Looking forward to 2026, Morford said cybersecurity is top of mind for their clients.
“There’s always new threats. AI is creating any number of new threats out there, and so being diligent about cybersecurity is key. One of the efforts for next year is multi-factor authentication,” Morford said.
DocMagic is also ready for clients who want to take advantage of the company’s Total eClose platform to support more closing scenarios and borrower preferences across the country. In November, a new in-person electronic notarization option was announced.
This offers lenders, settlement agents, notaries, and borrowers an additional digital option for situations where remote online notarization is not jurisdictionally permitted or not the preferred experience.
“There are some borrowers that still want, or title companies that still want, that close, intimate kind of ceremony of being in person. And IPEN now allows them to do that,” Morford said. “It helps lenders grow into being wherever they are in that digital mortgage space. We have their backs along the way.”