Snapdocs, a provider of digital mortgage closing solutions, in partnership with Falcon Capital Advisors, has released research showing that eClosing technology provides lenders with a pricing advantage of up to 10 basis points. The advantage stems from accelerated loan delivery to secondary and capital markets. On average, lenders utilizing eClosing platforms closed loans five days faster, securing this pricing benefit by delivering loans into an earlier month’s mortgage-backed security.
The study also found that digital closings generate a portfolio benefit of $115 to $283 per loan, attributed to increased efficiency and cost savings.
Digital Closings Drive Significant Savings
According to the study, the financial benefits of eClosing technology extend beyond pricing gains in secondary markets. Lenders reported reduced expenses in areas such as closing and funding processes, quality control, and document management. Additional savings were linked to lower shipping and custodian fees, fewer lost or damaged notes, reduced delays in investor delivery, and decreased warehouse line costs.
Eric McCall, VP at First Home Mortgage, emphasized the impact of Snapdocs’ eClosing technology on operational efficiency.
“Increasing our hybrid and eNote adoption has accelerated delivery to our warehouse partners and investors by eliminating signing errors and streamlining the process for our post-closing team,” McCall said. “We’re now able to deliver loans faster, which has led to savings for our bottom line. Snapdocs has been an indispensable partner in our transition from paper to electronic closings.”
Quantifying the Return on Digitization
Armando Falcon, Chairman and CEO of Falcon Capital Advisors, underscored the value of eClosing technology in optimizing lender strategies.
“Quantifying the value of faster loan delivery enables lenders to accurately assess the true return on digitization, whether evaluating new technology investments or measuring the impact of their current solutions,” said Falcon.
The findings highlight the transformative potential of eClosing technology. The study further revealed that the financial benefits grow as lenders increase the level of digitization, from hybrid closings to full remote online notarization (RON).
Michael Sachdev, CEO of Snapdocs, highlighted the broader implications of the research.
“Our research with Falcon Capital confirms that investing in eClose technology not only drives efficiency and is a step toward modernization, but also unlocks significant financial gains for lenders,” Sachdev said. “By shortening the time from closing to investor delivery, lenders gain flexibility and secure better pricing, creating measurable savings and a distinct competitive edge.”
The complete research findings are available at Snapdocs.com.
