The numbers prove it. Switching to a full eMortgage ecosystem saves on nearly every aspect of the loan process—from time, effort and materials to, most importantly, money. A study from MarketWise Advisors found that any form of electronically closed transaction – even one that was only partially electronic – produced positive ROI. In fact, the study indicated that 87 percent of lenders using an eClosing system closed more loans with the same staff or fewer in less time. The study also indicated that lenders who transitioned to a full eMortgage model saved even more: an average $444 in total impact per loan – an uplift of 91 percent.
So why isn’t everyone scrambling to jump on the eMortgage train? Is it because it’s too expensive or loan volume is down? While there are hurdles to transitioning to eMortgages, they might be different than what you think.
First, let’s dispel the myth that transitioning to an eMortgage ecosystem is expensive. A large budget isn’t necessary. The crux of the issue is whether you have the right processes and tools in place and in sync with one another. This includes your loan origination system, your notary platforms, your title, settlement and other vendors, and more.
A remote online notarization (RON) solution like DocVerify from Black Knight is a prime jumping-off point for moving away from a traditional mortgage workflow and toward a more efficient hybrid eMortgage model. DocVerify provides a secure platform to complete the notary process virtually, including safe and reliable identity proofing and credential analysis, without the need to meet in a physical location.
Contrary to what you might think, a slower mortgage market can be an ideal time to make the move to a new business model. Remember: the first big milestone along the path to eMortgage implementation is processes, not budget. That means your biggest investment will be time. And while you can get the technology for an eMortgage and eClosing system no matter the market conditions, it’s much more time-consuming to get your staff on board with new technology when business is booming. Educating staff on new tools and changing their workflows will naturally come with an adjustment period. But when loan volumes are down, it makes sense to use your staff’s extra time while you can.
As a hidden benefit, many companies have found that new eMortgage workflows mean better uses for their staff. The MarketWise study showed loans could be completed more profitably with a lower headcount. Instead of layoffs, though, staff can be realigned to manage other responsibilities for the organization to find additional value.
Now is the time to set yourself up for a more streamlined loan process that yields more lucrative results. Ask yourself if your current tech vendors have eMortgage components as part of their offering. If they don’t, look at new vendors that can offer a seamless, end-to-end loan experience for your borrowers and staff.
Interested in learning how an eMortgage ecosystem can maximize your time and your resources? Contact us to find out how you can set yourself apart from the competition.