Digital Mortgage Closing Statistics


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.

Digital Mortgage Closing Statistics 2023: Facts about Digital Mortgage Closing outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Digital Mortgage Closing, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Digital Mortgage Closing Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

Please read the page carefully and don’t miss any words.

Top Digital Mortgage Closing Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 32 Digital Mortgage Closing Statistics on this page 🙂

Digital Mortgage Closing “Latest” Statistics

  • Based on a $200,000 loan, mortgage rates were 5.750% in a 30-year fixed layer, 4.875% in a 15-year fixed layer, and 5.500% in a 5-year/6-month ARM layer variable.[1]
  • The length of time it takes to finalize a loan, according to a Finastra poll, is what 64% of customers think is the most stressful part of the mortgage application process.[2]
  • Banks can handle only 7% of items entirely digitally, exposing them to quickly expanding non-bank competitors.[2]
  • Nearly 81% of borrowers prefer signing loan paperwork online, which is a legally binding method of getting permission on electronic documents thanks to electronic signatures or e-signatures.[2]
  • According to a poll conducted by Atomik Research for Wyndham Capital Mortgage, 58% of customers think that only smartphones should be used to submit mortgage applications.[2]
  • Lenders adopted mobile apps less often (63%) than online applications/portals and eClosing portals less frequently (57%).[2]
  • Fintechs have established a strong presence in the mortgage sector over the previous several years, expanding 33% in only five years.[2]
  • By the end of 2021, some mortgage lenders anticipate a 30% increase in hybrid closings as digital mortgages become the new standard.[2]
  • 61% of Millennials and 59% of Gen Z respondents stated they would base their lender selection on a mobile app offering.[2]
  • Top-performing businesses completed loans 63% quicker than their rivals in the second quarter of 2020.[2]
  • While internet lenders increased from 5% to 38%, traditional banks’ share of the mortgage industry decreased from 40% to 28%.[2]
  • Less than 50% of major institutional lenders or businesses with 200 or more workers’ loan applications were made online.[3]
  • Homeowners who applied online enjoyed the quicker procedure (55%), and shorter time to close (53%).[3]
  • Considering that just 37% of customers in 2018 said they enjoyed that they didn’t need to meet in person for their online application process, it is no surprise that fewer in-person encounters will become more significant in 2020.[3]
  • More than half of all loan applications are filed online, according to 60.4% of lenders that accept online applications, while 38% said that more than 80% of their applications were finished online in 2020 minutes.[3]
  • 61% utilized an internet gateway to notarize and electronically sign papers, up from 56% in 2018.[3]
  • 99% of lenders agree that technology may assist in streamlining the mortgage application process.[3]
  • 63% of customers questioned, regardless of whether they had gone through the mortgage loan procedure or not, said that purchasing a property would be simpler if it could be done online rather than in person.[3]
  • According to a 2021 digital closing study by the American Land Title Association, 52% of respondents said that using RON reduced closing times since more papers were signed in advance, while 43% said that they had saved money.[4]
  • The availability of affordable housing is a serious issue for 49% of U.S. people, up ten percentage points from 2018.[4]
  • In a 2020 J.D. Power poll, 64% of customers said that a digital procedure would make refinancing or purchasing a property simpler than a face-to-face.[4]
  • The Mortgage Bankers Association reports that in the fourth quarter of 2021, total loan production costs reached an all-time high of 9,470 per loan.[4]
  • According to 2020 research by Forbes Insights and Freddie Mac, 85% of the businesses polled regarded their efforts at mortgage digitalization as active or extremely aggressive.[4]
  • A 2019 poll revealed that 14% of businesses provided digital closings two years prior to the health issue.[4]
  • According to ALTA’s 2021 Digital Closing Survey, 228% more title and settlement providers are now providing digital closings than in 2019.[4]
  • 70% of Americans responded in the same 2021 Pew Study that young folks now have a tougher problem purchasing a house than their parent’s generation did.[4]
  • Although 43% of lenders said they might conduct hybrid eClosings in 2020, up from 8% in 2017, just 13% claimed to have reached better than 75% implementation.[5]
  • Closing trails behind most of the technologies we are monitoring, with a net adoption rate of just 16%, accounting for both lender and user adoption.[5]
  • 82% of lenders claim that technology is live. Still, fewer than half demonstrate substantial internal adoption because the technology is checked off before the workforce has been adequately taught and encouraged to utilize the new software.[5]
  • Lenders must concentrate on the human factor since they will bear 90% of the cost despite the aim being well.[5]
  • PPE increased from 27% to 60%, but this wasn’t due to lenders implementing real-time pricing capabilities overnight.[5]
  • 73% of lenders said they would have live e-signing capabilities in 2020 up to now.[5]

Also Read

How Useful is Digital Mortgage Closing

The traditional mortgage closing process is often synonymous with stacks of paper documents, endless signatures, and numerous trips to the title company. It’s a time-consuming and cumbersome process that can leave both parties feeling overwhelmed and frustrated. However, digital mortgage closing eliminates many of these pain points by streamlining the process and bringing it into the digital age.

One of the most significant advantages of digital mortgage closing is the convenience it offers to all parties involved. Borrowers can sign documents electronically from the comfort of their own homes, eliminating the need to take time off work or rearrange their schedules to physically attend a closing appointment. Lenders can also benefit from this convenience by reducing the time and resources spent on managing paperwork and coordinating in-person signings. The digital closing process allows for greater flexibility and efficiency, ultimately making the entire experience more seamless for everyone.

Moreover, digital mortgage closing is not only convenient but also secure. By utilizing encrypted technology and secure platforms, digital closings ensure that sensitive financial information remains safe and protected throughout the process. This added layer of security gives peace of mind to both lenders and borrowers, knowing that their confidential information is being handled in a secure manner.

In addition to convenience and security, digital mortgage closing also offers increased accuracy and efficiency. By automating many of the manual processes involved in traditional closings, digital platforms can reduce the risk of errors and discrepancies in the documentation. This not only saves time but also minimizes the chances of any costly mistakes that could potentially delay the closing process. The streamlined workflow and real-time tracking capabilities provided by digital closings further contribute to an efficient and transparent experience for all parties involved.

Despite these advantages, some may raise concerns about the human touch being lost in the digital mortgage closing process. While it’s true that face-to-face interactions can foster trust and rapport, digital closings can still provide a personalized experience through virtual communication and support. Lenders can utilize video calls, chat features, and other digital tools to maintain a level of personalized service and engagement with borrowers during the closing process. Ultimately, the key is finding the right balance between technology and human interaction to create a positive and memorable closing experience for all involved.

In conclusion, digital mortgage closing is a valuable tool that is revolutionizing the way real estate transactions are conducted. Its convenience, security, and efficiency benefits both lenders and borrowers, providing a more streamlined and transparent closing process. While there may be concerns about the human touch being lost in the digital world, there are ways to ensure a personalized experience for all parties involved. As technology continues to evolve, digital mortgage closing will likely become an integral part of the mortgage industry, paving the way for more efficient and seamless transactions in the future.

Reference

  1. bankofamerica – https://www.bankofamerica.com/mortgage/home-mortgage/
  2. besmartee – https://www.besmartee.com/blog/digital-mortgage-10-stats-2021/
  3. forbes – https://www.forbes.com/sites/brendarichardson/2021/05/13/how-digital-technology-changed-the-face-of-the-mortgage-industry/
  4. housingwire – https://www.housingwire.com/articles/opinion-how-digital-closings-can-help-with-housing-affordability/
  5. stratmorgroup – https://www.stratmorgroup.com/digital-rising-the-mortgage-world-according-to-garth/

Leave a Comment