Reducing Cost-to-Close: The Technologies That Actually Move the Needle

Dec 5

In the U.S. mortgage industry, cost-to-close has become one of the biggest pain points for lenders. Rising labor expenses, manual verification steps, compliance reviews, and paper-heavy processes all add time—and every extra day increases cost.

But the good news? Modern eMortgage technologies are significantly lowering the cost-to-close, helping lenders operate faster, leaner, and far more competitively.

Below are the technologies that actually make a measurable difference.

1. Automated Document Processing (OCR + AI)

Manual document review is one of the most expensive parts of a mortgage file.
Today’s AI-driven OCR tools can:

Extract income, asset, and identity data automatically
Flag missing or inconsistent fields
Reduce manual data entry by up to 70%
Shorten underwriting cycles

This technology not only cuts labor hours but also improves accuracy, reducing costly rework.

2. eClosing & Remote Online Notarization (RON)

A traditional closing can involve 100+ pages of documents and multiple parties coordinating in person.
Switching to eClosing and RON:

Eliminates physical notary scheduling delays
Cuts printing and shipping expenses
Reduces closing time from days to hours
Enhances borrower satisfaction

Lenders using full eClose workflows often see cost-to-close drop meaningfully within the first six months.

3. eNotes & eVaults

Paper notes are expensive to print, store, ship, and track. eNotes solve all that.

With eNotes stored in secure eVaults, lenders reduce:

Document errors
Custodian handling costs
Shipping labor
Risk of lost notes

They also speed up secondary-market delivery, which improves liquidity—another cost benefit.

4. Income & Asset Verification via APIs

Instead of borrowers uploading stacks of PDFs and bank statements, lenders can now use automated verification APIs such as VOA/VOI/VOE tools. These:

Pull verified data directly from payroll and banking providers
Reduce fraud risk
Cut underwriting time
Lower the number of back-and-forth requests

This creates huge savings by removing manual review and borrower follow-ups.

5. Automated Compliance & QC Systems

Compliance is necessary—but expensive when done manually.
AI-powered QC and compliance tools can:

Detect regulatory issues early
Auto-check disclosures
Review data for consistency
Reduce post-closing audit expenses

By automating compliance, lenders avoid costly errors and reduce time spent on manual audits.

6. Workflow Automation in LOS & POS

A modern LOS/POS with automation features reduces time spent on repetitive tasks.

Examples include:

Automated task routing to the right team
Auto-generated checklists for borrowers
Smart notifications to prevent delays
Rule-based engine to trigger next steps

This streamlines the entire loan flow and helps processors manage more loans with less effort—directly lowering cost-to-close.

7. AI Underwriting Assist

Instead of waiting hours for manual underwriting queues, AI underwriting assistants can:

Pre-verify documents
Highlight risk areas
Auto-populate income calculations
Provide instant recommendations

This reduces underwriting time and improves file quality, which lowers rework and overall cost.

Final Thoughts

The lenders making the biggest improvements in cost-to-close aren’t just “digitizing paperwork”—they are transforming their entire workflow with automation, AI, and digital infrastructure.

By adopting these technologies, lenders can reduce operational costs, speed up closings, and offer a far better borrower experience.

Akshay Kumar