The mortgage industry has long touted that consumers are driving how real estate transactions are conducted, and as a result, the industry has continued to pump out new digital processes to improve the borrower experience. However, this borrower-centric approach was put to the test earlier this year when the COVID-19 pandemic completely altered the way real estate closings are handled.
Borrower safety quickly became one of the biggest priorities for everyone in the mortgage industry, and the best way to ensure this safety was through technology.
Any lender, title company or state that was hesitant to adopt digital closings before the pandemic couldn’t ignore it anymore. But does this mean remote online notarization (RON), eNotes, eRecording — along with all the other “e’s” — will be the new normal, or did everyone just put on a temporary bandage that will go away post-pandemic?
When looking at how the real estate closing ecosystem responded to the pandemic, there were two main roadblocks that made it difficult to maintain safety requirements: the varying regulations around RON and the fact that not every county allows eRecording. Both challenges play an important role in creating various types of digital closings.