PROGRESS in Lending surveyed its 90,000 plus readers and they overwhelming say that eClosing technology is in demand these days. The results were conclusive. In total, 75% of respondents said that demand for eClosing is huge.
“Whereas in previous years eClosings were a ‘nice to have,’ the events of 2020 made them a ‘need to have.’ Although most lenders were aware of the benefits that borrowers could gain from automating and removing paper from the closing process, it simply wasn’t enough of a driver to create widespread adoption,” said Michael Chaney, National Sales Manager at DocMagic. “However, the need for social distancing, stay at home requirements, and safety as a result of the pandemic ended up catapulting eClosing technology to the top of lenders’ must-have technologies pretty much overnight.”
In total, 25% of respondents characterized eClosing technology demand as average and 0% said that it was poor. What does that mean? 100% of respondents believe that the interest in eClosing technology is either huge or average. That is a resounding affirmation of the need for the mortgage industry to more fully embrace eClosing.
And according to Chaney, vendors are responding by enhancing their offerings. Vendors have “been working with the mortgage supply chain for years to encourage adoption of eClosing technology and digitization of paper-intensive workflows,” he pointed out. “Whether a lender takes a phased approach to implementing eClosing technologies with various hybrid models; or, they elect to establish a 100% paperless eClosing workflow complete with RON technology, eNotes and eVaults, it is nonetheless refreshing to see the industry as a whole working to create a better mortgage experience for borrowers.”
This movement is very encouraging to many industry participants that have been pushing for broader eClosing technology adoption. For one, Tim Anderson, SVP Digital Strategy & Product Innovation at MortgageConnect, made this sentiment clear when he said, I’ve “been waiting for this for some time.”
Hopefully others feel the same and will act on that feeling by embracing this technology.
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