About 90% of mortgage lenders offer digital closing services to customers, but e-closings are less common in practice, according to a report released Tuesday by Snapdocs.

The California-based company, which provides digital closing software, noted that the use of e-closing services has increased 22% since 2023. However, Snapdocs found that just 14% of lenders close more than 80% of their loans digitally.

Based on a third-party survey of more than 100 mortgage lenders, Snapdocs reported that 50% of lenders cited high technology costs as a barrier to adopting digital closing services. Another 42% mentioned lack of stakeholder usage, and 41% said that technology issues were preventing them from using e-closing software.

Of those surveyed that have adopted digital closings, 83% of respondents reported improved borrower satisfaction, 82% cited faster closings and 79% said they have seen fewer errors on closing documents.

“Just offering e-closing is no longer the differentiator — it’s driving meaningful adoption that sets lenders apart,” Snapdocs CEO Michael Sachdev said in a press release. “Slow adoption is preventing many lenders from fully unlocking the speed, efficiency and improved borrower experience from digital closings.”

The adoption rate may quicken this year, though. According to the survey, 44% of respondents said they plan to implement a new e-closing service this year, while 49% said they intend to expand hybrid closings with a combination of digital services and traditional ink signatures across more of their loan portfolios.