Eighty-seven percent of lenders agree that eClosings are faster and cheaper than traditional mortgage closings. According to National Mortgage Professional, lenders can save up to $444 per mortgage loan with eClosing.
But what exactly is eClosing and how does it streamline processes? Learn more about the types of eClosing software.
What is eClosing Mortgage Software
With eClosing software, it lets borrowers close mortgages partially or completely online. Which removes the need to visit a physical location to sign documents associated with the homebuying process. You can consider eClosing software to be a self-service tool that lets users access services online at their own convenience.
What Are the Different Types of eClosing?
There are three types of eClosing:
- Hybrid eClose
- Full eClose
- RON + Hybrid
A hybrid eClosing happens when a borrower signs some documents with electronic signatures and other documents wet-sign. Documents that need a witness or notarization generally require a wet signature. Research from the Stratmor Group shows that 43 percent of lenders were able to execute hybrid eClosings in 2020 – up from 8 percent in 2017.
A full eClosing occurs when a borrower signs all real estate documents electronically. The borrower doesn’t have to physically meet with a loan officer – including those that require notarization or a witness.
Remote Online Notary (RON) + Hybrid
A remote online notarization (RON) provides convenience where notary required documents can be electronically signed by the borrower in a secure video call ceremony with a notary. SimpleNexus, an nCino Company, delivers the power of a complete digital closing solution with hybrid and RON eClosing capability. This solution strengthens borrower and partnership relationships, support workflows for closing teams, faster delivery to the secondary market, and provides a premium, high-touch borrower experience. As of 2022, 41 states now allow remote online notarization.
How Can Nexus Closing Help with Traditional and eClosings?
Nexus Closing™ is a cloud-based Saas (software-as-a-service) solution that integrates with a loan origination system (LOS) for a traditional, hybrid RON+hybrid, and full eMortgage closings. It provides a single sign-on (SSO) experience for borrowers and lenders, allowing both parties to streamline and automate multiple aspects of the closing process. Nexus Closing also provides automatic status updates and collaboration tools to increase transparency between borrowers and lenders.
Hybrid eClose is a software solution that lets lenders send closing packages and enables borrowers to sign many of the documents electronically. Borrowers sign documents that require a notary in person.
Remote Online Notarization
Nexus Closing’s Remote Online Notarization provides convenience where notary required documents can be electronically signed by the borrower in a secure video call with a notary.
eNote, eVault, and eRegistry
These three products enable lenders to manage digital assets in the homebuying process. Partner integrations guarantee that all documents signed online are stored securely and tamper-sealed, and that trading partners receive electronic promissory notes (eNotes) on time.
SimpleNexus tracks disclosure processes in a LOS and makes it simple to document disclosure timelines for compliance reasons. Everyone involved receives notifications regarding the closing process.
SimpleNexus’ closing portal allows lenders to collaborate with settlement agents and ensures easy delivery and retrieval of closing packages to improve title collaboration.
Support any eClosing Format with SimpleNexus
With eClosing software, your organization can provide borrowers multiple options for closing loans. Want to learn how eClosing software can help your organization? Book a demo today.