MBA Premier Member Editorial: The Growing Desire for eClosing–Debunking Lenders’ Biggest Perceived RON Challenges

Marc Bator is vice president and principal product manager of EXOS® Close at ServiceLink

Today’s borrowers are used to getting what they want at the tap of a finger. Whether it’s getting food delivered right to their doorstep or lining up an Uber, they expect speed, simplicity and transparency. When it comes to closing on a home, it’s no different.

ServiceLink’s 2025 State of Homebuying Report, which surveyed nearly 1,500 people who either purchased or attempted to purchase a home in the last four years, indicated that buyers want to see more technology infused into the process for these same reasons. Fifty-nine percent of respondents said the biggest benefit to infusing technology into the mortgage process is the convenience and ease of use that it brings, while 51% indicated that a top benefit of technology is that it brings about time savings. Increased flexibility, transparency and cost savings also were benefits.

Borrowers will even select a lender based on these offerings, with 68% of respondents saying they would be swayed to work with a lender that offers virtual closings and 55% said they would prioritize a lender that offers a 100% digital process, with no in-person appointments.

Lenders, likewise, have similar goals, according to Fannie Mae’s 2025 Mortgage Lender Sentiment Survey Special Topics Report that looks at lenders’ business priorities and eMortgage adoption. In the report, 37% of lenders surveyed said one of their biggest business goals this year is streamlining processes–up from 29% in 2024. The other main priority for lenders is to find ways to save money.

Utilizing eClosings is a great way to streamline business operations and reduce costs. Remote Online Notarization (RON) removes the need for in-person appointments and allows notaries to certify documents in less time with fewer errors. Issues like missed signatures, initials and dates are no longer a problem when you use RON. Turn times also are reduced and the speed, simplicity and transparency that borrowers desire can be found.

So, what’s the holdup? Why haven’t all lenders given RON a try?

While most lenders recently surveyed by Fannie Mae (79%) say they’re familiar with RON, there are a lot of misconceptions out there that could be holding them back from implementation. But there already are solutions that can fix what lenders say are the biggest challenges in RON adoption. Let’s take a look.  

Breaking down the myths: Solving the challenges of RON adoption

State by state variability in RON legislation

The biggest challenge for lenders when it comes to RON adoption is the lack of uniform legislation across states, with 40% of MLSS respondents saying this was one of their main hurdles. Yes, it’s a complex scenario. In fact, eNotarization eligibility can vary even at the county level. Fun fact: Did you know that there were more than 3,100 counties across the United States? That’s a lot of eligibility to keep track of. But it’s actually quite manageable with the right partner. While there are some variances, all states have adopted similar protocols for RON closings. However, even if the state says you’re good to go, it’s important to check each county’s rules. They differ. The best solution is to work with a settlement services provider that offers instant determination on RON closings. With the right technology, the right partner will be able to tell you from the get-go which properties are RON eligible and which ones you need to find another route for. This removes the burden of navigating varying requirements, so they can get their borrowers to the table quickly and seamlessly.

Assessing settlement partners’ RON capabilities

Another top challenge for lenders is the lack of availability of RON-equipped settlement service providers. According to the recent MLSS findings, 30% of lenders who responded to the survey said this is one of their top two challenges when it comes to RON adoption. The truth is that not all settlement service providers are equipped to provide the level of support required for a seamless transition. This is why choosing the right partner matters. When looking for the right partner, you want to find one that offers a panel of experienced RON-ready notaries that span a broad scope of states and work across a variety of platforms. Look for a partner that has the people, technology and ideas to help in whatever capacity you need as you work toward increasing RON closings. Seek a partner that offers operational expertise to help ensure all closing go off without a hitch by providing the necessary support.

Lagging acceptance of RON from investors

While 34% of the recent MLSS survey respondents reported unclear/low investor acceptance as one of their top challenges, there has been progress and there could be changes coming. eNotarization is permitted by the GSEs if specific criteria is met. Also, earlier this year, the first eHELOC was signed and registered on the MERS platform for sale/transfer. This is a big step forward for RON acceptance. It’s important for lenders to begin building a foundation now so they’re ready when investor acceptance grows.

Lack of familiarity with RON

While RON adoption continues to progress, 19% of lenders who responded to the MLSS survey indicated that a lack of familiarity with it was one of their biggest challenges. If that’s you, now is a good time to familiarize yourself with RON. The best way to become familiar with RON transactions is to find a partner who already knows the space. Look for one that has successfully handled a large number of RON transactions and understands your needs. Finding the right partner is the best way to learn more about RON and make the leap.

Now is the time to act

Adopting RON isn’t just about keeping pace with technology — it’s about meeting modern borrower expectations and positioning your organization for long-term success. With consumers demanding convenience, speed and transparency, RON enables lenders to deliver a fully digital experience that builds trust and loyalty. The challenges around legislation, investor acceptance and familiarity are rapidly being addressed, and with the right settlement services partner, implementing RON can be seamless.

By embracing digital closings now, lenders can streamline operations, reduce costs and stay ahead in an increasingly competitive mortgage landscape. Now is the time for lenders to move confidently toward a fully digital closing to gain a competitive edge.

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)