The Virtual Experience Top-5: eClosing Insights
eClosing has been discussed as the next big game-changer in digital mortgage lending. While 2019 saw some early adoption of eClosing solutions, how has 2020 fared thus far? And, how has the COVID-19 situation impacted such adoption? Industry experts Garth Graham and Mark Ladd shared real-time viewpoints about the state of eClosing as part of Virtual Experience 2020. Here are five key take-aways:
1. eClosing reaps many rewards: For borrowers, there are fewer documents to sign at the closing table, a better audit trail, and a greater overall experience. Lenders can improve quality control, increase speed-to-close, and significantly reduce hedge costs. And, investors can better evaluate risk while streamlining their processes.
2. Borrower satisfaction drives volume: Today’s borrowers prefer a digital environment and want a fast closing experience. When loans close on time, with maximum transparency, borrowers are much more likely to make referrals and become repeat customers.
3. Lenders have underinvested in eClosing solutions: Despite the benefits, overall adoption of eClosing solutions has been relatively low. In fact, 80% of lenders were still investigating eClosing options as of Q1-2020. However…
4. COVID-19 is driving demand for eClosing solutions: The importance of a fully-digital closing process is increasingly apparent in the current environment. Lenders who resisted or were evaluating eClosing prior to COVID-19 are now in catch-up mode.
5. Recording processes are also evolving: As the COVID-19 situation unfolds, states and counties are looking for ways to keep every type of business open, including county recording offices. eRecording solutions can help, but are subject to the ability of a given recording jurisdiction's ability to accept electronically witnessed documents.
The above insights were shared during our “What’s the Real Deal with eClosing?” session from Virtual Experience 2020. Looking to learn more about which Ellie Mae partner solutions are available to help address market changes in the wake of COVID-19, including eClosing and remote online notarization (RON)? Check our COVID-19 page for more info.
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