Tipping Point for eMortgage Adoption?

I recently came across a study in the latest issue of the Journal of Structured Finance by MBA Chief Economist Mike Fratantoni about the acceleration of eMortgage adoption. The study looks at the jump in eMortgage adoption over the past few years, specifically fueled by the pandemic, and why the market may currently be at a tipping point moving toward a period of more rapid adoption.

Some key findings of the study show that while eMortgages are likely to result in lower costs and a faster process, cost advantages alone have not been sufficient enough to spur adoption.

“Mortgage industry participants should begin to consider the implications of this technological change. With more widespread adoption, multiple aspects of the mortgage process will accelerate, likely shortening application-closing and closing-sale time frames. Although it may not be business imperative to be able to handle eMortgages today, it may well be soon. As has been seen with other episodes of technology adoption in the financial world, once the ground shifts, it can shift further quickly.”

So what is holding lenders back from adopting digital solutions? I discuss some of these obstacles in my latest HousingWire Q&A (featured below). As always, our team of digital experts are here to field any questions you have about how to start or further your company’s digital journey.


Guaranteed Rate Launches End-to-End, Digital, Fixed-Rate HELOC

Guaranteed Rate launched a new fixed-rate digital HELOC designed to help homeowners quickly access their equity through an end-to-end digital platform. A timely solution considering homeowners gained a whopping 35% in equity in 2021, resulting in more homeowners choosing to tap their home’s value to pay off high-interest debt or fund home improvement projects without affecting their home’s low mortgage rate.



The Obstacles to a Digital Mortgage are Changing

There’s no question that a digital-first way of doing business is becoming the norm and the demand for digital in the mortgage industry is only growing. HousingWire recently spoke with our C E O Armando Falcon about the continued growth of digital mortgage solutions such as eClosings and what lenders can do to implement eMortgages into their business models.




Can Digital Closings Help with Housing Affordability?

ALTA CEO Diane Tomb believes so. In a recent HousingWire article, Tomb said: “With revenue tightening and volume slowing, it is becoming increasingly important for companies to adjust costs. As a result, lenders and title companies are seeking ways to invest and implement solutions that will further streamline operations, grow market share, remain competitive, and improve borrower experience while providing increased ROI. One avenue to reduce cost and streamline the closing process is to offer digital closings.” To help drive the adoption of digital closings, ALTA partnered with MISMO to be the sole provider of title and settlement agent data for the MISMO e-Eligibility Exchange, powered by Snapdocs. The e-Eligibility Exchange serves as a central source of information on the criteria that impact digital closings.



RON Updates

Two more states have passed RON legislation — North Carolina and Delaware — bringing the total number of states with RON legislation to 41 and SoftPro has just released a new product that has both eSign and RON functionality. So, what’s on the horizon for RON? It’s unclear, especially as we wait for Congress to enact legislation that would permit RON nationwide. However, according to Savvy, there are still some remaining obstacles that stand in the way of full adoption, including lack of awareness, regulatory acceptance, and training/education.



Former Head of FHFA Mark Calabria Joins Evolve’s Advisory Board

Mark Calabria, the former Director of the FHFA from 2019-2021, has just joined Evolve Mortgage Services‘ advisory board. Commenting on the news, Evolve CEO Paul Anselmo
said: “Mark has impressed us with his business acumen, the caliber of achievements, and invaluable expertise. The vast array of talent and knowledge Calabria brings will help accelerate our growth and expand our digital footprint as we continue to evolve our solutions to change the way loans are bought and sold in the marketplace.”



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Falcon Digital Mortgage View


One of the hurdles that advocates of digital lending have faced in convincing their companies to undertake a major digital transformation has been the ability to show hard ROI. Everyone believes in the potential of digital – faster, cheaper, more efficient – but there’s been a lack of hard numbers to prove it – until now. Recently two different surveys, commissioned by Notarize and ICE respectively, drilled down into the benefits of eClosing solutions and put hard numbers against them. Notarize’s study found that lenders can save up to $444 per loan and title agents up to $100 per loan when using an eClosing solution. ICE’s study found that lenders can save 70 minutes per loan and shave 2 days off the loan cycle using the company’s hybrid eClosing system.

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