SAN FRANCISCO--(BUSINESS WIRE)--Mortgage lenders can save more than $400 per loan by using eClose technology to digitize and automate the mortgage closing process, according to research performed by Snapdocs, the mortgage industry’s leading digital closing platform. This newly-released research validates this savings potential across all digital closing types including hybrid, hybrid with eNote, and full eClose (also known as Remote Online Notarization, or RON).
The Snapdocs research found that lenders can experience near-immediate savings of over $110 per loan with hybrid closings, in which the borrower previews and eSigns the majority of closing documents. When the promissory note is also digitized (hybrid with eNote), average lender savings nearly triples to $290 per loan, Snapdocs reported. By fully digitizing the mortgage closing process with eNote and RON, the study found that lenders can generate savings of $400 per loan or more. These potential savings come at a time when margins remain under pressure, and lenders are prioritizing cost-savings initiatives.
“We are trying to adjust for dramatic margin compression and are focused now more than ever to find opportunities to improve our profits,” said Jen Bailey, Closing Department Manager at Gold Star Mortgage Financial Group, a Snapdocs customer since 2022. “Digital closings with Snapdocs made our business more efficient and the entire loan process easier for our borrowers, as well as all those involved in the closing, post-closing, and collateral departments. Ultimately, Snapdocs has already helped us shave hundreds of dollars off of each loan, while shortening the closing cycle and delivering a better customer experience.”
Snapdocs’ research is first-of-its-kind, defining the real drivers behind each savings opportunity, and enabling lenders to make impactful changes to their technology strategy. The report states that the average gross savings per loan significantly increases as the transaction becomes more digitized. This is due in large part to process efficiencies and reduced errors during the loan manufacturing and closing process, and from faster funding cycle times with the secondary market. While the analysis focuses on quantifiable impacts of digital closings, resounding benefits also include improved borrower and employee satisfaction from a more seamless lending experience.
“In the current market, the entire industry is focused on reducing costs,” said Aaron King, Founder and CEO of Snapdocs. “Our research confirms what a growing number of lenders already know—eClosing is critical to any mortgage strategy to remain competitive and improve margins. The lenders that implement eClosing technology today will be the ones driving progress and innovation in our industry when the market inevitably bounces back. Transitioning to digital closings is the single best investment for processing loans faster, more efficiently, and at a higher profit.“
The full findings can be accessed by downloading a copy of Snapdocs’ eBook, “Quantifying the Value of eClose.”
About the Report
The data reflected in the report is based upon the estimated average cost and impact across 25 lending organizations that have either implemented, or evaluated, the Snapdocs Digital Closing Platform. The data was collected in February 2023 based on reported lender performance and input from eClosing industry experts.
Snapdocs is the mortgage industry’s leading digital closing platform. Powering millions of closings each year, Snapdocs combines an open platform, patented AI technology, the largest settlement network, and a team of industry experts to ensure digital closing success. Our proven approach enables market-leading lenders and title companies to automate the closing process and turn it into a competitive advantage. Using Snapdocs, lenders and title companies close more loans at lower costs while delivering the modern, referral-worthy digital experience borrowers expect. For more information, please visit www.snapdocs.com.