Operationalizing eClosings has been on lenders’ to-do lists for several years now but perceived barriers remain, according to the Mortgage Lender Sentiment Survey® (MLSS) Special Topics Report, released in August 2025. We explore common concerns – and explain how lenders can overcome them.

While market conditions change, two priorities remain nearly constant for today’s lenders: the borrower experience and operational efficiency. Adopting eClosings helps lenders address both borrower desires and lender goals, and the right partner eases implementation challenges.

A better borrower experience

When asked, 43 percent of respondents from the 2025 ServiceLink State of Homebuying Report (SOHBR) stated they wanted less paperwork and more electronic forms, and 42% wanted a speedier process. After a big leap up from 2023 (48%), adoption seems to have remained steady: 62% of both 2024 and 2025 respondents eSigned documents in their recent transactions. And yet, the ability to close virtually impacts borrowers’ decision-making: 68% of surveyed borrowers said they’d be more likely to select a lender that offers virtual closing options and 66% cited a fully digital process, with no in-person appointments, as a benefit. eClosing adoption can help lenders align the origination experience with borrowers’ desires.

Streamlined operations

Meanwhile, 37% of lenders surveyed in a recent MLSS cited streamlining business processes as a priority, and 29% said cost-cutting. eClosings streamline closing and post-closing. Remote online notarization (RON) eliminates the need for in-person meetings, frees notaries to certify more documents in less time, and results in fewer errors — inconsistencies including missed signatures, initials and dates — which can significantly reduce turnaround time. Moreover, the process provides executed documents back in real-time allowing lenders to start post-closing and funding processes sooner. An alternative option, IPEN, offers similar benefits.

Transitioning to RON: The challenges and solutions

Most lenders recently surveyed (79%) are familiar with RON, but may have misconceptions about the viability of implementing it at their organization. Operationalizing RON doesn’t need to be difficult, says Marc Bator, vice president and principal product manager of EXOS® Close at ServiceLink. “Making RON closings a ‘business as usual’ option for borrowers doesn’t mean upending the organization. It means working with a forward-thinking settlement services partner who can provide the technology; help you navigate the needs, expectations and requirements of the various players involved; and create an unrivaled consumer experience,” Bator explains.

Lack of uniformity in RON legislation across states. Two in five lenders consider the lack of uniformity in RON legislation across states as a top challenge. That complexity may extend beyond what lenders realize, as eNotarization acceptance can vary at the county level. It’s a complex scenario but quite manageable with the right partner, Bator says. “With some variances, all states have adopted similar protocols for RON closings. In contrast, counties can make some of their own acceptance protocols. So, while the state may say you’re good to go with RON, certain counties within that state may refuse to record electronically notarized documents,” he explains. “ServiceLink can instantly determine whether we can file a document electronically or need to send it in a different way. We remove the burden of navigating the varying requirements from our lender partners so they can close quickly and seamlessly.”

Availability of RON capabilities by settlement partners. 37% of lenders cited availability of RON capabilities as a challenge for RON adoption. The reality is, not all settlement service providers are equipped to provide the level of support required for a seamless transition – so selecting the right partner is essential. ServiceLink, for example, has a panel of hundreds of RON-ready notaries spanning a broad scope of states and working across many platforms, has executed tens of thousands of RON closings, and has collaborated with lenders of all sizes in various stages of RON adoption. “While some lenders prefer for us to do all of their closings and signings, others may need support in standing up pilot programs. We have the people, technology and ideas to help in whatever capacity is needed on the journey to full RON,” Bator says.

Unclear/low investor acceptance of RON. While investor acceptance of RON remains a challenge, it may not be for long. The GSEs permit eNotarization, if specific criteria are met.  Earlier this year, the first eHELOC was signed and registered on the MERS platform for sale/transfer – demonstrating a big step for RON acceptance. Building the foundation now ensures lenders are ready when investor acceptance grows.

In-person electronic notarization: Enabling digitization without disruption

In-person electronic notarization (IPEN) allows lenders to digitize notarization while maintaining face-to-face or in-branch closing experiences. In these transactions, the borrower eSigns with an in-person notary, who, in turn, eSigns and eNotarizes all applicable documents. During this process, the closing platform performs real-time quality control checks, reducing post-close issues and allowing for instant document transfers. While realizing these benefits, the lender and borrower still have an opportunity for in-person interaction – especially essential for Gen Z, who expressed a desire for more in-person interactions with their loan officer/broker when surveyed. Across generations, 42% of borrowers expressed a desire for more education from their real estate agent/lender, which an in-person closing event can help foster.

Lack of familiarity with IPEN. Though IPEN actually predates RON, lenders consider their lack of familiarity with IPEN a barrier to adoption. However, an experienced provider can help guide them through implementation. ServiceLink, for example, has supported IPEN transaction for years, recently stood up an IPEN program with a top depository institution and has closed thousands of IPEN transactions to date. Lenders don’t have to be experts in the nuances of the process when they have a reliable partner. And, the same decision engine ServiceLink uses to determine RON-eligibility is also used to instantly determine IPEN-eligibility, so lenders do not have to track state and county legislation.

Availability of IPEN capabilities by settlement providers. 32% of lenders considered the availability of IPEN capabilities by settlement partners a potential barrier to entry. While IPEN is available almost everywhere, many providers haven’t caught up. Because ServiceLink was an early adapter of IPEN, it has coverage in all IPEN-eligible markets. This expertise is why more and more clients are choosing to work with ServiceLink for 100% of their signings – whether they use RON, IPEN or a mix. “We have supported many lenders through various stages of their eClosing journey,” Bator says. “We help them figure out the best product mix and pilot area, develop and implement the process, and then plan how they can most efficiently expand that process enterprise-wide.”

Implementation made easy

Whether implementing RON or IPEN closings, organizational coordination is essential. Even if the organization has a centralized processing unit, there are likely to be multiple vendors with multiple processes, and multiple underwriters. The way to go about this is by creating a process that addresses the needs of every stakeholder — loan officers, underwriters, processors, closers, vendors and borrowers. While this can become an overwhelming task, Bator focuses on simplifying that task. “It doesn’t need to be overcomplicated. When a lender asks us to do their closings, we simply digitize their existing signing process,” Bator shares. “They send us docs just as they would for a wet sign. We digitize them and assign a notary prepared to support a RON or IPEN transaction. With EXOS® Close, we can even incorporate the scheduling. The borrower can select remote or in-person closing, and then self-schedule a time that’s convenient for them.”

As data continues to trend toward embracing technology, we can expect to see many lenders moving decisively toward eClosings. If you are among them and would like more information about the various paths available, contact ServiceLink today.

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