Research Finds Digital Closings Create Up to 10 Basis Point Pricing Advantage

(Illustration courtesy of Snapdocs)

eClosing technology enables lenders to achieve up to a 10 basis point pricing gain by accelerating loan delivery to the secondary and capital markets, according to a new study from Snapdocs and Falcon Capital Advisors.

The study found that lenders using the Snapdocs platform delivered loans an average of five days faster, securing this pricing gain for loans delivered into an earlier month’s mortgage-backed security. It said lenders see a portfolio benefit of $115–$283 per loan when digital closings are adopted at scale.

While pricing gains emerged as an advantage for lenders selling to secondary markets, it is just one of eight factors that research participants said contribute to the average $115-$283 benefits per loan with eClosing technology. Other cost-saving drivers include closing and funding process efficiencies, fewer errors, automated quality control and document management, lower shipping and custodian expenses, elimination of lost and damaged notes, savings from delayed investor delivery, and reduced warehouse line spend. “These savings increase with the level of loan digitization—from wet-ink signatures to hybrid closings, hybrid closings with eNote, and fully digital remote online notarization,” the report said.

Snapdocs CEO Michael Sachdev said he advises lenders who want to adopt new technology to establish benchmarks, track performance, and hold vendors accountable. “[This research] confirms that investing in eClose technology not only drives efficiency and is a step toward modernization, but also unlocks significant financial gains for lenders,” he said. “By shortening the time from closing to investor delivery, lenders gain flexibility and secure better pricing, creating measurable savings and a distinct competitive edge.”