Many still prefer in-person closings, 19% prefer RON: Solidifi

A large share of borrowers wants some digital closing tools, but the majority still prefer in-person interactions, according to survey data from Solidifi, a vendor that provides valuation, title and settlement services to the residential mortgage lending industry. 

The 2022 consumer mortgage experience survey, which had over 1,000 participants, found that about 81% of borrowers want a face-to-face closing and 19% prefer remote online notarization. Of those who prefer a face-to-face process, 60% want paper documents, 25% would choose a hybrid process that includes e-docs and 15% seek a digital experience.

For home equity line of credit closings, 71% of participants indicated that they prefer a mobile notary for their refinances.

"In the current market, good experiences and relationships were four times more likely than interest rates to drive repeat business with a lender," said Loren Cooke, president of Solidifi. "The results showcased that good relationships and experiences build not only trust but also loyalty towards lenders – equating to future business."

Solidifi's mortgage experience survey also found that 96% of satisfied borrowers were likely to use their lender again, and 72% were likely to recommend their lenders.

"The mortgage process can be a gateway for lenders to build customer loyalty," Cooke noted. "The results showcased that good relationships and experiences build not only trust but also loyalty towards lenders – equating to future business."

Also boding well for future business is a separate survey of over 500 homeowners by Solidifi, that finds – despite the origination slump – the majority intend to purchase, refinance, or take out a home equity line of credit in the next three to five years. Turnover rate typically lengthens when rates rise. The survey findings are in contrast to other recent numbers for turnover that exceed five years.

Additionally, more than half of all survey participants are considering purchasing an investment property or vacation home, according to the company's 2022 future plans of homeowners report.

The high mortgage rate environment has put pressure on homeowners' impending plans, the commissioned survey said, but life events, such as caring for an aging relative, education expenses and getting married will continue to drive mortgage decisions.

Another facet driving borrower decisions continues to be home improvement. Although other studies anticipate a decline in spending on remodeling, Solidifi found nearly half of homeowners would refinance their home to refurbish it, while 75% of those surveyed cited home improvements as the main reason for getting a HELOC.