Digital closing technology is a tremendously powerful tool for lenders.
You can close up to 40% more loans without hiring more employees and decrease errors that appear at the closing table by 80%. Not all eClosing technology can deliver results like this though.
In order to see this level of operational efficiency, lenders need a digital closing solution that handles all of their closings. Doing a portion of your loan volume as hybrid closings and eClosings won’t cut it. Digital closing technology must support 100% of your loan volume. Here’s why.
One efficient process for every closing, with every settlement partner
When your digital closing technology supports wet closings, hybrid closings, and eClosings, you can create one standardized process for all closings. No matter how the loan is closed or which settlement agent you’re working with, your team now has a single workflow that simplifies all of this complexity. Every loan is closed quickly and accurately, regardless of consumer preference, closing method, settlement partner, loan type, or region.
If your eClosing platform only handles hybrid closings and eClosings, you’ll have to juggle one process for hybrids and eClosings and another process for wet closings. Your closers need to determine which process they can use on a loan-by-loan basis. This wastes time and energy. Multiple closing processes add steps to your workflow, and the additional complexity makes it even more difficult for your closers and settlement partners to get their job done efficiently.
Todd Burton, Director of Process Development at Allied Mortgage Group, perfectly described some of the problems with multiple closing processes:
[I]f you have two separate processes, you can be working with a title company. If you’re sending over two loans to them — maybe in the same day — and one’s a wet closing and one is a hybrid closing, and if you have two different processes, how can it not create some confusion for them? Again, going back to the idea of how am I handling this one. Am I printing out the packets on this one? Am I logging into a different portal on this one? So, multiple processes really create many opportunities for issues, failures, and mistakes.
By implementing a digital closing solution that supports all types of closings, you’re able to standardize your closing process. Your team can close all loans through one platform, whether it’s a wet, hybrid, or eClosing. Communication, documents, and compliance are all consolidated in one place, streamlining your operations.
Lenders like Allied Mortgage Group and Evergreen Home Loans have recognized how important it is to have a digital closing solution that enables them to manage any type of closing and work with any settlement agent. “We want one flow, one process. Everybody’s always working in the same environment, whether it’s a hybrid or a full wet sign closing package,” said Tamra Rieger, COO at Evergreen Home Loans.
Having one efficient closing process saves time, and these time savings add up so that lenders are able to close more loans without having to hire more employees.
Benefits across 100% of your loans
Your eClosing provider should also be able to handle 100% of your loan volume. If the vendor places any restrictions on how many closings can be processed through their technology, ask them to explain why. Even if the vendor says they support all closing types, you’re forced to manage multiple closing processes when you’re unable to close all of your loans using the digital closing solution.
By processing all of your loans through a digital closing solution, you’ll close every loan faster and provide a high-quality experience to all of your borrowers and settlement partners. Borrowers can electronically review their documents days before their closing appointment, regardless of the type of closing. For every closing, the closing package is automatically transferred back into your LOS once the signing is completed.
When you’re able to apply the benefits of digital closings across all of your loans, you’ll give every borrower a digital closing experience. Plus, the time and cost savings that you experience on one closing will be magnified across all closings, which is where real value comes from.
