Loan officers see e-closing momentum, but borrowers remain key to adoption

Survey highlights growing use of digital closings alongside continued demand for traditional processes

Loan officers see e-closing momentum, but borrowers remain key to adoption

Survey highlights growing use of digital closings alongside continued demand for traditional processes

Pittsburgh-based mortgage technology provider ServiceLink released a report Wednesday based on responses from more than 500 loan officers and 1,500 homebuyers who purchased a home within the past two years.

Among the loan officers surveyed, 84% said they are “seeing a moderate to substantial uptick” in the use of e-closings in the last two years. But despite the “widespread momentum” behind electronic closing processes, remote online notarizations are still not the mainstream.

ServiceLink’s report points to perceived barriers that are holding up wider adoption, including borrowers’ lack of interest in or comfort with digital closings and preferences for traditional closing processes.

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Still, 76% of loan officers said conditions for buying in 2026 are favorable, with nearly half describing conditions as “very favorable.” Homebuyers were somewhat less positive, with 63% calling conditions favorable.

When asked what areas the industry should focus its improvement efforts on, 4 in 10 loan officers identified reducing unexpected or hidden costs for the borrower beyond disclosed fees.

“Increasing transparency for borrowers” and “improving customer service by providing proactive support and guidance to the borrower” tied for second, with 35% of respondents selecting each. “Better communication from the lender to their borrowers” was cited by 33%.

Other areas identified as important for improvement included “improving data security or identification verification in digital tools” at 30% and “reducing borrowers’ fees” at 28%.

“It will take intentionality for originators to implement these improvements — as it includes more targeted borrower education and transparency about the mortgage fees and origination costs, as well as proactive communication to consumers with key milestone updates along the way,” the report said.

ServiceLink had previously published its “State of Homebuying Report” in April, which had cautioned about the challenges the housing market is facing.

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