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Mortgage cos. Slow to adopt e-closing

June 17, 2002

New Method's Rate Of Acceptance 'Less Than Enthusiastic,' Standardization Needed

Inman News Features

The adoption of electronic mortgage closings by financial institutions is on the rise but the rate of acceptance of this new method is less than enthusiastic, according to a report from Meridien Research.

The mortgage industry has a few barriers that must be surmounted before wide-scale adoption occurs, according to the report, "Electronic Mortgages: Closing the Deal."

"We expect the U.S. mortgage industry to continue to implement electronic mortgage closings in a limited fashion over the next 24 months," said Jeanne Capachin, research director at Meridien Research. "As standards are further developed and the legal environment more defined, we will see stronger growth in the use of technology as its savings and efficiencies become too compelling to resist."

Newton, Mass.-based Meridien Research provides analytical research services to users and providers of financial industry technology.

Copyright: Inman News Service

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