Why eClose is a necessity in a digital-first world
Authored by: Wyatt Licht, Platform Partnerships Manager @ Roostify
In a digital-first world, eClose is essential
In March 2020, the ability to remotely service a new mortgage from origination to close became critical to maintaining business continuity in the face of an unprecedented shift to remote work. The COVID-19 pandemic pressed the fast-forward button on the industry’s steady transition to digital-first operations. With offices closed and customers hesitant to meet with loan officers face-to-face, digital mortgages have become the new normal.
eClose not only ensures business continues uninterrupted, but also creates new opportunities to provide customers with an exceptional experience. Moreover, firms that commit to hybrid and fully digital processes gain valuable cost-saving benefits.
eClose supports a seamless, engaging customer experience
Customers today expect digital experiences. With a smartphone and an internet connection, customers can open bank accounts, deposit checks, sign up for auto and home insurance, manage their retirement accounts, and trade stocks. In fact, 97% of millennials and 91% of Gen X-ers use mobile banking applications.
At this point, going to a physical location to sign mortgage documents feels not only inconvenient, but also unsafe. eClose modernizes mortgages, creating a customer experience that feels natural, engaging, and familiar in a digital world. Borrowers can find their dream home and apply for a loan online; they shouldn't have to wait to complete the mortgage process.
On the lender’s side, loan officers benefit from greater levels of efficiency. With shorter closing appointments - some of which may be able to be conducted remotely - loan officers have more time to attend each session personally without creating delays for their other borrowers. Loan officers who are present at closing can assuage fear and confusion associated with this final stage, and are more likely to get referral and repeat business.
eClose ensures business continuity during times of uncertainty
As long as social distancing practices are being observed, borrowers will be unlikely to visit lenders in person. These cautionary practices may even continue long after any official restrictions have been lifted. Lenders that can provide a completely digital mortgage experience from start to finish are well-positioned to weather this pandemic and succeed in a post-pandemic world.
eClose can also generate considerable savings for lenders. Docutech’s Executive Vice President of eStrategies Harry Gardner provided an example cited by the Mortgage Bankers Association:
“A non-warehouse lender originating 12,000 mortgages per year with an average loan value of $250,000 can save $155 per loan by transitioning to a hybrid eClose process, adding up to a whopping $1.8M in savings annually. If the same lender were to move to a full eNote eClose offering, savings could increase to $224 per loan, resulting in more than $2.6M in annual savings.”
Furthermore, eClose can strengthen a firm’s mortgage business by creating further operational efficiency transparency, and data security. Digital lending platforms (DLPs) with integrated eClose functionality improve loan quality by reducing the need to manually re-key customer data, reducing the likelihood of human error. Stronger data accuracy supports compliance and speeds up processes. Building secure integrations requires careful planning and expertise. Roostify is building the right solutions to meet lender needs while protecting customer privacy.
Digital mortgages are here to stay. Sign up for a free demo of the Roostify platform to learn more.