Lenders and Title Agents See Savings with Remote Online Notarization
Remote Online Notarization (RON) increased in usage by lenders, title companies and real estate agents in 2021. A study done by the American Land and Title Association (ALTA) shows that there has been a 228% increase in title companies that offer digital closings. That is mostly in part to more states passing remote online notarization laws, allowing the identity verification portion of closings to be virtual during the COVID-19 pandemic.
Monarch Title was one of the first title agencies in Missouri to implement this program and have completed several RON closings using this technology. One of the closings would have been delayed for weeks had it not been for the ability to close remotely with the sellers. The sellers were out of the country and were not scheduled to return for weeks. Needless to say, the buyer, seller, and realtor, were all extremely thankful for this technology.
Due to having more digital closings, we have a lot more data about what tools companies are using, how many virtual closings they do a month, and how much money can be saved from using RON.
Lenders Save Time And Money With Virtual Closings
A study done by MarketWise Advisors shows that lenders can save up to $444 per loan when they electronically close using RON. The money saved is easy to see. However, the biggest savings reported was time.
Lenders who conducted hybrid remote closings saw an average time savings of about 99 minutes. Those lenders fully utilizing remote closings saved up to 157 minutes per transaction.
Lenders see a higher return on investment across the e-closing lifecycle, saving up to seven days in the processing/funding cycle and saving up to $174 per loan.
Title Agents See Resource, Time, and Financial Savings With Remote Closings
The same study showed that title agents could save up to $100 per transaction that used remote online notarization, due to reduced printing and shipping costs, saved time and increased loan quality.
Title agents save up to 104 minutes and benefit from enhanced lender communication, ease of use, and shorter closing times.
Overall Study Takeaways on Remote Online Notarization
The fact that RON produces loans that can be completed faster, with less errors, more checks and with more financial savings than in-person and print methods, makes it easy for companies to invest in, despite the software and training costs.
The use of the electronic notarization software decreased significant errors because it made sure no signatures were missed, no paperwork was missed or illegible, and fewer staff was needed for the transaction.
The Cost Of Implementing RON
ALTA conducted a 2021 digital closing survey. While their study found that 43% reported cost savings and 52% reported closing time decreases, it came with a cost. On average, title companies spend $30,000 to implement RON – with software, equipment and training.
However, with more closings, the ROI on RON will be seen. Want to learn about using remote online notarization for an upcoming closing in Columbia, MO? Contact Monarch Title Company today.