The mortgage industry is also talking about eClosings and RON. Naturally, one of its leading trade publications approached our own CEO, Aaron Davis for his thoughts recently. (Subscription required)
A recent study by Notarize found that lenders can save up to $444 on per loan costs with full eClosings. Title/settlement firms can save up to $97. These are significant numbers during a time of margin compression and heightened competition. One would expect the premise to drive lenders and title agencies alike toward full digital closing adoption (by the way, FAN has some of the nation’s most advanced RON and eClosing capabilities—and has had them for some time).
However, as Aaron pointed out, while adoption of RON and digital closings was spurred, in large part, by the daily realities of the COVID pandemic, the historic surge of refinances that came with unprecedented interest rates forced lenders to put their focus—and resources—on processing refinance volume instead of on RON or eClosing initiatives. So we still have some way to go before digital closings are the norm.
Aaron’s spoken on this issue several times before. If you have some thoughts for him, or questions, contact him now.