As the lending industry continues to change, one thing is clear – digital technology is beneficial in many ways. One of the solutions that digital technology has given birth to in this industry is eClosing.
Short for electronic closing, eClosing is a process that allows borrowers of a loan to sign some or all of the loan documents electronically. This eliminates a lot of manual processes and streamlines the entire borrowing process.
If you’re still not sure whether eClosing will do you good as a lender, here are some benefits to consider:
1. eClosing streamlines the borrowing experience
Did you know that about 83% of the total number of mortgage borrowers prefer using an online portal when borrowing? This should come as no surprise, considering the convenience that an online portal can offer.
Well, you may argue that online portals don’t look safe, but they actually can be a lot safer than the manual process thanks to various security measures. What’s more, top-quality eClosing software for mortgage lenders allows for better flexibility when it comes to loan processing.
2. eClosing solutions are secure
With digitization becoming the norm, cyber security is a must-have input for businesses that shift their processes online. Thankfully, eClosing software is designed with that in mind. Such tools use a high level of data encryption methods and user authentication to ensure the security of data and transactions.
Besides, eClosing software makes it easier to have a trackable trail of every transaction that was made. That way, disparities will be easier to catch and resolve.
3. eClosing offers real-time updates
As a lender having to deal with manual updates can be a real pain to your business processes. That’s in consideration that manual updates are time-consuming and quite laborious. eClosing software solves this problem and makes it easier to receive updates on active loans as required.
With such updates, you can make changes, if needed, without waiting days, sometimes weeks, for paperwork sent by the borrower to arrive. This streamlines the loan processing further and allows you to concentrate more on providing quality services to your customers.
4. eClosing reduces errors and guarantees data integrity
Errors are super costly in the lending industry, and they can ruin an entire business, not just a few processes. eClosing software comes in swiftly to solve this problem by eliminating the need for manual processing and entry of data.
That way, typos and other mistakes won’t find their way into the system, and that enhances data integrity by a huge margin. Besides, automatic updates and the storage of documents in one central place allow for uniformity which further enhances data quality.
5. eClosing enhances transparency and compliance
It’s crucial to ensure transparency when it comes to the closing processes that are associated with loans. Thanks to digital processes, it’s easier for all the involved parties to stay updated through the entire process. Lenders can therefore stay in control of the loans and ensure that everyone agrees with all stages of the process.
Thanks to increased transparency, it then becomes possible to ensure compliance. Besides, eClosing tools automate critical processes, hence assuring adherence to state and federal regulations.
Upgrade your lending services with SimpleNexus
With the ever-growing competition in the lending industry, it’s crucial to leverage new solutions to stay competitive.
SimpleNexus is an eClosing software solution that upgrades the loan-closing process of your lending business. So if you’re looking to refine your lending services and attract more customers, make sure to give SimpleNexus a try today.