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The Path to Paperless Mortgages


The days of traditional mortgage lending may be close to being over as tech-savvy millennials and new regulatory changes such as the TILA-RESPA Integrated Disclosures rule (TRID) add pressure to originators to step up their mortgage delivery game.

A survey from Xerox showed that lenders and potential borrowers are showing signs of moving to a completely digital process, perhaps sooner than the industry may think.

The 11th annual Xerox Path to Paperless Survey found that 92 percent of mortgage experts expect to see an increase in eDelivery for loans because of TRID. Only 15 percent of mortgage pros stated that they smoothly implemented the regulation, but once the industry adapts, closing delays will no longer be an issue and borrowers will receive their documents electronically.

The report also showed that 51 percent of mortgage pros believe that all mortgage loans will be closed electronically in four years or less, up from 33 percent from a year ago.

Mortgage pros noted that their top three benefits to going paperless are:

  1. Accelerate closing disclosure process (66 percent)
  2. Accelerate document delivery process (63 percent)
  3. Decrease processing time and cost per loan (59 percent)

The number of mortgage professionals leveraging smartphones and mobile tablets in their businesses doubled year-over-year from 16 percent in 2014 to 32 percent in 2015. In addition, eAcknowledgment and eSignatures is considered “very important” by 61 percent of mortgage professionals.

The millennial generation is another huge incentive for eMortgages, representing the largest group of homebuyers in today's market. Fifty-one percent of survey respondents indicated that they have already implemented new technologies to appeal to this generation. A social media presence (51 percent), a consumer portal (43 percent), recruiting programs targeting college students, recent graduates (18 percent), and loan programs for millennials (10 percent) are a few implementations that Xerox says will attract millennials.

“While completely digital mortgages are not yet the norm, our survey shows continued movement away from shuffling paper from one desk to another and toward online platforms that enhance communication between all parties at every stage of the loan,” said Jeffrey Nuckols, SVP of Xerox Financial Services. “The new regulatory effort to improve the mortgage process comes at a time ripe for engaging today’s borrowers who increasingly demand an interactive, digital experience.”

Click here to view the full survey.

About Author: Staff Writer


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