Originators may be underestimating borrowers’ appetite for digital closings — and potentially overlooking a way to differentiate themselves in a competitive purchase market.
Forty-five percent of LOs surveyed by ServiceLink identified a lack of borrower interest or comfort as one of the main barriers preventing them from using eClosings more frequently. But recent homebuyers surveyed separately by the company expressed considerable interest in digital options.
Eighty-eight percent said the ability to electronically sign some or all closing documents would influence their decision to work with a particular mortgage provider. Another 87% said the same about using a smartphone or tablet to schedule an appraisal or closing appointment, while 82% pointed to the availability of virtual closings.
The findings appear in the 2026 ServiceLink Loan Officer Report, released Wednesday. The report compares responses from 507 LOs with at least three years of experience against a separate survey of 1,554 adults who purchased a home within the previous two years.
The results do not establish that individual LOs misunderstand their own clients because the two surveys involved separate groups. But they point to a broader disconnect between the barriers originators perceive and the digital capabilities recent buyers say they value.
“Originators who want to stand out in today’s competitive market should focus on two key areas: innovation and education,” said Dave Steinmetz, division president of origination services at ServiceLink. “Our research shows that today’s borrowers are ready for a more digital experience, with many willing to switch lenders for the convenience and cost savings a digital closing provides.”
Originator Preference Is Also A Barrier
Borrower resistance was not the only explanation LOs gave for limited eClosing use.
Forty percent cited their own preference for traditional processes as a barrier, while 37% pointed to limited availability of fully compliant eClosing technology. Thirty-four percent cited technical or platform-reliability concerns, and 31% identified state or regulatory restrictions.
Those results suggest the adoption gap cannot be attributed solely to what borrowers want. Technology availability, settlement-provider capabilities, local recording practices, and internal workflows can all determine whether an originator is able to offer a fully digital closing.
An eClosing also does not necessarily mean that every part of a transaction occurs remotely. Fannie Mae defines an eClosing as a closing in which some or all documents are accessed and executed electronically. That can include a hybrid closing in which certain documents are signed electronically while others, such as the security instrument, are printed and wet-signed.
A transaction becomes an eMortgage only when the promissory note is executed electronically as an eNote, according to Fannie Mae.
The federal government has also placed greater emphasis on digital mortgage infrastructure. A March executive order directed the Department of Housing and Urban Development, Department of Veterans Affairs, Department of Agriculture, and Federal Housing Finance Agency to consider eliminating unnecessary wet-signature requirements and standardizing acceptance of electronic signatures, eNotes, and remote online notarization.
The order directs the agencies to consider changes consistent with existing law; it does not itself eliminate wet-signature requirements or require lenders to offer digital closings.
The ServiceLink findings suggest that asking borrowers about their preferred closing format may be more reliable than assuming they want an in-person process. An LO may not control the lender’s technology or the settlement provider’s capabilities, but can determine what options are available and explain them early in the transaction.
Borrowers And LOs Differ On Fee Understanding
The report identified another perception gap involving mortgage fees.
Fifty-three percent of recent homebuyers said they fully understood application and document fees, compared with 39% of LOs who believed their borrowers fully understood them.
Half of borrowers said they fully understood private mortgage insurance, while 27% of LOs believed borrowers did. And 47% of buyers reported fully understanding lender origination fees, compared with 28% of LOs.
The difference creates an opening for originators to explain what borrowers are paying, why a charge applies, and whether it is collected by the lender or a third party. That education could be particularly valuable when borrowers believe they already understand the cost and may not know which questions to ask.
LOs and borrowers were more closely aligned on what needs to improve. Among recent buyers, 39% wanted a faster process, 39% wanted greater transparency, and 36% wanted less paperwork and more electronic forms.
LOs most frequently said the industry should concentrate on reducing unexpected or hidden costs beyond disclosed fees, cited by 40%. Increased transparency and more proactive customer service and guidance each ranked 35%.
The report is a companion to ServiceLink’s 2026 State of Homebuying Report, which NMP covered in April. That earlier research found buyers were stretching their budgets and underestimating some of the costs associated with homeownership.
For originators, the two reports point toward the same practical strategy: offer borrowers choices about how they complete the transaction, while providing enough guidance that convenience does not come at the expense of understanding.
