Mortgage closing is a critical part of the homebuying process. Traditionally, it has been a time-consuming and complicated process. However, with the advent of digital technology, the mortgage closing process has become faster, more efficient, and less prone to errors.

Here are digital mortgage closing statistics that demonstrate the growing popularity and success of this technology-driven process.

Digital Mortgage Closing Stats

Digital Mortgage Closing Benefits Statistics

Statistic	Percentage/Amount
Lenders believe that technology can help improve the mortgage application process	99%
Benefits of technology cited by lenders:
– Simplifying the entire process	74%
– Reducing time to close	70%
– Minimizing data entry	67%

Statistic	Percentage/Amount
Traditional bank’s share of the mortgage market	28%
Online lenders share of the mortgage market	38%
Nonbanks market share in 2019	Nearly 2/3
Nonbanks’ share of the mortgage market in 2009	9%
Fintech share of the mortgage market in 2010	2%
Digital mortgage closing market expected to reach	$3.11 billion
Digital mortgage closing market expected to grow at a CAGR from 2021 to 2028	21.5%

Statistic	Percentage/Amount
Electronic promissory notes usage grew in Q1 2019	5,000%

Statistic	Percentage/Amount
Housing finance firms with the technology needed to e close	43%
Housing finance firms with an adoption rate of 75% or more	12%
Individual users of e closing technologies	54%
Company adoption rate of e closing technologies	30%
Net adoption rate of e closing technologies according to Stratmor	16%
Rise in hybrid closings predicted by mortgage lenders by the end of 2021	30%
Title and settlement companies offering digital closings increased by	228%
Professionals offering digital closings prior to the health crisis	14%
Professionals offering digital closings in 2021	46%
Adoption of remote online notarization (RON) soared in 2020	547%
Transactions closed with some variation of RON	5%
Increase in RON closings expected in 2021 by surveyed professionals	64%

Statistic	Percentage/Amount
Top performing companies in the second quarter in 2020 processed loans faster than their competitors	63% faster
Fintechs grew in the mortgage industry within five years	33%
Consumers preferring to submit financial documents using digital tools	69%
Consumers finding the time it takes to close a loan as the most stressful factor	64%
Gen Z respondents and Millennials basing their lender decision on a mobile app offering	70% and 59%
Consumers believing they should be able to apply for a mortgage exclusively via smartphone	58%
Borrowers prefer signing a loan document online	81%
Increase in customer satisfaction scores	127%
Transactions closed with some variation of RON	5%
Average expense to implement RON	Just under $30,000
Las Vegas, NV ranked in the highest risk category for price decline	N/A

The Popularity of Digital Mortgage Closing

1. 80% of homebuyers want a fully digital mortgage process.
2. Digital mortgage closings can reduce errors by up to 90% compared to traditional closings.
3. According to a survey, 68% of borrowers who closed their mortgage digitally said it was a “better experience” than a traditional in-person closing.
4. In 2020, the percentage of eNotes used in mortgage closings increased by 264%.
5. The use of Remote Online Notarization (RON) increased by 547% in 2020 due to the COVID-19 pandemic.
6. The digital mortgage closing market is expected to grow at a CAGR of 21.5% from 2021 to 2028.

Improved Efficiency with Digital Mortgage Closing

1. The average time to close a loan decreased from 44 days to 23 days when using digital closing technology.
2. Digital mortgage closings can save lenders up to $1,200 per loan.
3. Digital mortgage closings can reduce the need for in-person meetings, saving borrowers time and money.
4. The use of digital signatures in mortgage closings can save borrowers an average of 1.4 hours.

Enhancing the Customer Experience

1. Digital mortgage closings can improve the borrower experience by providing a more convenient and streamlined process.
2. Borrowers can sign documents electronically, reducing the need for physical paperwork.
3. Borrowers can complete the mortgage closing process from the comfort of their own home.
4. Digital mortgage closings can reduce the stress and complexity associated with traditional closings.

Addressing Security Concerns

1. Digital mortgage closings are highly secure, with encryption and authentication measures in place to protect sensitive information.
2. Electronic documents are tamper-evident, making it easy to detect any unauthorized changes.
3. Digital mortgage closings can provide a clear chain of custody for documents, reducing the risk of fraud.

The Impact of COVID-19 on Digital Mortgage Closing

1. Due to the COVID-19 pandemic, many states have adopted emergency measures to allow for remote notarization and electronic signatures in mortgage closings.
2. The pandemic has accelerated the adoption of digital mortgage closing technology.
3. Digital mortgage closings have allowed the homebuying process to continue despite social distancing measures.

The Future of Digital Mortgage Closing

1. The digital mortgage closing market is expected to reach $3.11 billion by 2025.
2. The adoption of digital mortgage closing technology is expected to increase in the coming years.
3. Automated mortgage closings are being developed, which could further streamline the process.

Conclusion

The statistics presented here demonstrate the growing popularity and success of digital mortgage closing technology. With the COVID-19 pandemic accelerating its adoption, the future looks bright for this efficient, convenient, and secure method of closing mortgages. As technology continues to develop, we can expect to see further innovation in this field, with automated mortgage closings on the horizon.