Mortgage lenders can save more than $400 per loan by using e-closing technology to digitize and automate the mortgage closing process, according to research performed by Snapdocs, a digital closing platform for the mortgage industry.
This research validates this savings potential across all digital closing types including hybrid, hybrid with e-note and full e-close (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 e-signs the majority of closing documents. When the promissory note is also digitized (hybrid with e-note), average lender savings nearly triples to $290 per loan, Snapdocs reported.
By fully digitizing the mortgage closing process with e-note 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.
“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,” says Jen Bailey, closing department manager at Gold Star Mortgage Financial Group. “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.”
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.The full findings can be accessed here.