Research Finds Digital Closings Create Up to 10 Bps Pricing Advantage

Snapdocs Publish date: Nov 14, 2024

SAN FRANCISCO – November 14, 2024 – Snapdocs, the mortgage industry’s leading digital closing provider, today announced new research conducted in partnership with Falcon Capital Advisors, revealing that eClosing technology enables lenders to achieve a pricing gain of up to 10 basis points¹ by accelerating loan delivery to the secondary and capital markets. The study highlighted that lenders using the Snapdocs platform delivered loans an average of five days faster, securing this pricing gain for loans delivered into an earlier month's mortgage-backed security. This research also validated that lenders see a portfolio benefit of $115–$283² per loan when digital closings are adopted at scale.

“Our research shows that eClosing technology is a game-changer for lenders in optimizing their secondary market 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.”

— Armando Falcon, Chairman and CEO of Falcon Capital Advisors

While pricing gains emerged as an added advantage for lenders selling to secondary markets, it is just one of eight key factors that research participants said contribute to the average $115-$283 benefits per loan with eClosing technology. Other cost-saving drivers include 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. These savings increase with the level of loan digitization—from wet-ink signatures to hybrid closings, hybrid closings with eNote, and fully digital remote online notarization (RON).

“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. 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.”

— Eric McCall, VP at First Home Mortgage

Snapdocs engaged Falcon Capital Advisors to conduct this study to address a critical gap in the industry’s understanding of the tangible value eClosing technology offers lenders. While digital closings are widely acknowledged as an innovative step, few studies quantify the specific financial advantages for lenders. This research is a powerful tool for lenders to make informed decisions about technology investments that drive real business improvement.

“When adopting new technology, we always advise lenders to establish benchmarks, track performance, and hold vendors accountable. 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.”

— Michael Sachdev, CEO of Snapdocs

A full report of the research findings is available at Snapdocs.com.

^{1, 2} The ROI of Digital Closings, 2024 Edition | page 5 and 6, page 7 respectively

About the Research

To conduct this study, Snapdocs collaborated with Falcon Capital Advisors, the industry-leading advisory firm providing strategic advice and technical expertise to financial institutions and government agencies. The study involved in-depth interviews and surveys between June and August 2024 with over 25 industry participants, including both Snapdocs customers and non-Snapdocs customers, to assess changes in key metrics after implementing digital closings. Participants represented a diverse range of business sizes and models, encompassing loan originators, secondary and capital market professionals, warehouse lenders, investors, and custodians.

About Snapdocs

Snapdocs is the leading digital closing provider, connecting the people, processes, and technologies that power a mortgage closing. Our platform automates every interaction between lenders and title companies from pre-closing through the sale of the loan. With our patented AI technology, hands-on customer service, and extensive settlement and notary networks, all mortgage participants enjoy accurate, smooth, and secure closings. This approach gives customers a competitive advantage by saving them time and money. Snapdocs makes mortgage a snap. For more information, please visit www.snapdocs.com.