Snapdocs, a digital closing provider for lenders, released new research that shows lenders using its eClosing platform are 18 days faster than industry peers across the loan production timeline – from loan application through delivery to the secondary market. The research comes from the advisory firm, STRATMOR Group, which collected self-reported data from over 150 mortgage lenders.
The average lender in a participant group spent over 70 days from application to shipping, including 48.7 days from application to closing and 21.6 days from closing to shipping. However, STRATMOR’s research shows that lenders using Snapdocs eClosing platform averaged only 41.1 days from application to closing and 11 days from closing to shipping, making a 26% overall improvement. Snapdoc lenders that move loans off warehouse lines were even faster, averaging 18.6 days on warehouse lines as compared to non-Snapdocs participants' average of 29.3 days – a 37% reduction in funding cycle time.
“We analyzed the average number of days between application and closing, between closing and shipping, and on warehouse lines,” said Garth Graham, senior partner at STRATMOR Group. “Mortgage lenders utilizing the Snapdocs eClosing platform outperformed their participant peers across all three metrics.”
Although employee productivity and efficient processes can improve loan velocity throughout the loan life cycle, STRATMOR Group’s research shows that the fastest lenders commonly use the Snapdocs eClosing platform.
“Snapdocs helped us implement operational efficiencies that fed right back into our system,” said Chelsea Nelson, vice president of mortgage operations at Elevations Credit Union, an Equal Housing Opportunity lender. “We have faster closings, fewer errors, and no document scanning or sorting. Post-closing times have been cut in half, if not two-thirds. Those efficiencies translate into monetary value pretty quickly."
Snapdocs produced a report titled "The Need for Speed" that examines STRATMOR Group's research to identify lenders achieving the fastest loan velocities and the key factors driving their success. The report also references data from National Mortgage News and the MERS registry that found Snapdocs customers have an eClosing adoption rate 2.5 times higher than the industry average, as well as the highest utilization of eNotes among retail mortgage lenders.
“STRATMOR's research offers a comprehensive look at how eClosing technology is reshaping the lending landscape by enhancing loan processing speed, reducing operating costs, and improving borrower satisfaction,” said Michael Sachdev, CEO of Snapdocs. “We are proud to help our lender customers reach adoption at scale, thereby capturing the full value of eClosing.”
