eClosing Leads To Price Advantages, Major Savings
New research found that accelerating loan delivery to the secondary and capital markets through eClosings leads to pricing gains of up to 10 bps.
Research conducted by Snapdocs in partnership with Falcon Capital Advisors showed that lenders using Snapdocs delivered loans an average of five days faster and saw portfolio benefits of $115 to $283 per loan when adopted at scale.
“Our research shows that eClosing technology is a game-changer for lenders in optimizing their secondary market strategies,” said Armando Falcon, Chairman and CEO of Falcon Capital Advisors.
“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.”
For lenders selling to secondary markets, pricing gains were just one advantage. Participants said cost-saving drivers included closing and funding process efficiencies, fewer errors, automated quality control and document management, lower shipping and custodian expenses, elimination of lost and damaged notes, savings from delayed investor delivery, and reduced warehouse line spend.
“When adopting new technology, we always advise lenders to establish benchmarks, track performance, and hold vendors accountable,” said Michael Sachdev, CEO of Snapdocs.
“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. By shortening the time from closing to investor delivery, lenders gain flexibility and secure better pricing, creating measurable savings and a distinct competitive edge.”
A full report of the research findings is available at Snapdocs.com. The study involved in-depth interviews and surveys between June and August 2024 with more than two dozen industry participants, including both Snapdocs customers and non-Snapdocs customers.
Snapdocs is the mortgage industry’s leading digital closing provider, combining an open platform and AI technology to ensure digital closing success.