Fully Paperless Mortgage Looking Less Likely Soon

Sixty-eight percent of survey participants said they believe that more than half of all loans will be closed as a digital mortgage within the next seven years.

The share was lower than in the same survey conducted last year, when 79 percent of respondents predicted digital closing would replace paper closings during the same period.

Results of the ninth annual Path to Paperless survey were released Wednesday by Xerox Mortgage Services.

The survey was conducted on mortgage professionals involved with loan origination, underwriting and closing. Also participating were people in archiving, investing/funding and servicing.

Just 17 percent of the participants said that they utilize complete electronic mortgage solutions through all points in the loan process.

The report indicated that 88 percent cited pressure to comply with industry regulations and standards as the greatest factor impacting electronic mortgage and paperless initiatives.

“Even with compliance demands front and center, 63 percent of respondents noted having electronic document solutions in place, compared with 55 percent in 2012, which underscores the commitment to adopting paperless technologies in the near term,” Xerox said.

Digital delivery of disclosures was in place at 57 percent of those surveyed.

An increase in electronic disclosures was noted by 82 percent, and nearly a third reported an increase in electronic closings.

Nearly three-quarters of those surveyed said that their paperless plans have been hindered because the Department of Housing and Urban Development does not accept digital signatures.

The same share said their plans for electronic mortgages have been delayed due to limited acceptance of electronic notes by the secondary market. Still, nearly half of the group delivers loan folders to investors in a digital format.