Hybrid Closings vs Full eClosings: What Works Best Today?
As the mortgage industry continues its digital transformation, the debate between hybrid closings and full eClosings has become more relevant than ever. Lenders, title companies, and borrowers alike are navigating the pros and cons of each approach to determine which best fits today’s rapidly evolving market. Let’s break down the differences, the current landscape, and which model is gaining traction.
Understanding the Basics
Hybrid Closing:
A hybrid closing combines digital and traditional elements. Most documents are signed electronically (eSigned), but a few—typically the promissory note or notarized documents—are still signed in person with ink.
Full eClosing:
A full eClosing is 100% digital. All documents, including those requiring notarization, are signed electronically. This often involves Remote Online Notarization (RON) or in-person electronic notarization (IPEN), enabling borrowers to complete the process entirely online.
Pros and Cons of Each
Benefits of Hybrid Closings
Easier to implement: Most lenders already have systems in place for partial digital adoption.
Less resistance from stakeholders: Title agents and borrowers may feel more comfortable retaining some face-to-face elements.
Fewer regulatory hurdles: Hybrid closings avoid complex remote notarization laws in certain states.
Drawbacks of Hybrid Closings
Still involves paper: Requires wet signatures and in-person visits, creating inefficiencies.
Limited scalability: Hybrid solutions may not significantly reduce closing time or operational costs.
Benefits of Full eClosings
Convenience for borrowers: The entire closing can be completed remotely, 24/7, from any location.
Speed and efficiency: Reduced paperwork, fewer delays, and faster disbursement times.
Improved compliance and security: Digital audit trails and identity verification reduce fraud risk.
Drawbacks of Full eClosings
Technology barriers: Not all parties (borrowers, notaries, title agents) are equipped or trained.
State law limitations: RON is not yet universally accepted, creating friction in some jurisdictions.
Initial setup costs: Implementing full eClosing platforms can be costly and time-consuming.
Industry Adoption Trends in 2025
As of 2025, hybrid closings remain the dominant model—primarily because they offer a transitional step toward full digital adoption. However, full eClosings are growing fast, especially in states with clear RON legislation and among tech-savvy lenders and fintech-backed platforms.
According to recent industry data:
Over 70% of lenders offer hybrid closings.
Full eClosings have increased by 35% year-over-year.
Borrowers under age 40 are 2x more likely to prefer full eClosings due to digital convenience.
What Works Best Today?
For Most Lenders: Hybrid Closings
Hybrid closings provide a balance between compliance and modernization. They allow institutions to digitize parts of the process without full overhaul, making them ideal for lenders in transition.
For Innovators and Digital-Native Lenders: Full eClosings
Full eClosings are the future. Lenders that invest early in scalable, RON-compliant systems will reap long-term rewards—improved borrower experience, reduced costs, and faster cycle times.
Final Thoughts
The right closing model depends on your organization's readiness, regulatory environment, and borrower expectations. While hybrid closings dominate today, the shift toward full eClosings is accelerating—driven by borrower demand, remote work trends, and digital-native generations entering the housing market.
Staying ahead means evaluating your tech stack, training teams, and aligning with eClosing partners who can help future-proof your operations.
