Fully-digital eClosings, enabled by remote online notarization, allow buyers to close on a mortgage remotely. eClosings come with a host of benefits for all parties involved in a real estate transaction. This includes cost and time savings, convenience and a better customer experience. In fact, a recent study by MarketWise Advisors indicated that lenders can save up to $444 per loan and title agents can save up to $97 per transaction by switching to eClosings.
In order to reap the benefits and ROI of end-to-end eClosing, lenders and title agents need to implement the right technology that fits their needs and have a plan for tackling change management. In a recent webinar, we discussed the power of eClosings and change management with Keri Rogers, SVP of Strategic Planning at Lennar Mortgage and Jordan Brown, CEO of MarketWise Advisors. Here are the tips they gave for successfully implementing eClosing.
It’s never easy to change how people do their work. Introducing new processes and technology can backfire if not done in a thoughtful, strategic manner. Too many changes at once can be an overload and lead to lower levels of adoption.
According to Rogers, a veteran when it comes to implementing automation and eClosing technology, change management is vital. Change management is a systematic approach to dealing with the transition or transformation of an organization's goals, processes or technologies. Without it, you can expect lower adoption rates, lower ROI and unexpected outcomes. She notes that you also risk having a history of failed process changes in implementing new technology, which will make it more difficult to bring in more technology in the future.
Rogers explains that the best way to get started is to get active and visible sponsorship from leadership. If the organization from the top down is fully committed and everyone sees the value and ROI of a particular initiative, you’re more likely to get buy-in from the entire organization. It’s important that sponsors understand exactly what their role is in the change management process for it to be successful.
While the concept of eClosing mortgages isn’t new, prior to the pandemic, the real estate industry had been notoriously behind the times when it came to digital processes. But during the height of Covid, lenders were compelled to work with technology and gained a general level of acceptance. Now is the time to build on that digitization and continue to implement technology and capabilities that save time and money across the mortgage closing ecosystem, while better serving their customers.
It’s important to choose the right partner for your eClosing technology needs. You’ll want to consider their attention to compliance, understanding of workflows, customer enablement and support, and focus on cybersecurity. Once you’ve chosen a vendor that best fits your needs and can become your trusted partner, you can focus on implementation and adoption.
According to Rogers, these are some of the important aspects of implementing eClosings and the technology that enables them:
Brown explains that at the end of the day, the objective is to close a loan and to do so while providing the best customer experience. When introducing eClosings you need to set expectations with your borrowers, and ensure you have all of the operations in place internally, with title agents and with the local recording office. A smooth and seamless digital transaction should be the aim.
“For Lennar, when a borrower can close a loan on their mobile device while standing in their new kitchen, holding the keys to their new home, that is success,” said Rogers.
For more information on the value of eClosings and successful change management, check out our recent webinar with Marketwise Advisors and Lennar Mortgage here.