Why More Lenders Are Rethinking In-House Home Equity Closings

The Hidden Costs of In-Branch Closings

Branch staff wear many hats. Between managing customer relationships, opening accounts, and assisting walk-ins, it’s no surprise that home equity closings don’t always get the attention they require. This is especially true for lenders trying to manage the closing process across dozens or even hundreds of branches.

One VP of Lending we work with recently shared that her bank’s branch staff often struggles with basic closing logistics — like printing the right documents or making sure all signatures are captured. This results in errors that must be caught and corrected later by back-office staff, often requiring the borrower to come back in and re-sign. That’s frustrating for everyone involved.

Even more concerning is what happens after the closing. One large regional bank discovered that hundreds of signed documents were sitting unrecorded in branches across multiple states. The issue? No clear process or accountability for ensuring documents were recorded promptly. That delay created serious risk: if another lien is recorded before the bank’s documents, the bank could lose its priority lien position.

Outsourcing as a Solution — Without Losing Control

To address these issues, many lenders are turning to third-party providers to coordinate home equity closings. At CSS, we work with banks, credit unions, and IMBs to simplify and standardize the process — reducing risk, improving efficiency, and creating a more consistent borrower experience.

Here’s how it works:

• We schedule the closing based on the borrower’s preferred time and location—whether that’s at home, in a branch, or after hours.
• A vetted notary (in-person or remote) handles the signing.
• We review the package to ensure all documents are properly signed and notarized.
• We verify that documents meet recordability standards.
• We submit them for recording promptly — no waiting on a branch to follow through.

This model removes the burden from branch staff while giving lenders complete flexibility. Some of our clients still choose to conduct closings in their branches, but now they know the paperwork is done correctly the first time and will be recorded without delay.

A More Scalable, Reliable Closing Process

Outsourcing home equity closings may come with a direct cost per loan, but it eliminates the hidden costs of rework, delayed recordings, borrower frustration, and staff distraction. For lenders looking to scale their home equity programs without adding operational risk, it’s an increasingly attractive option.

If your institution is still relying on in-house closings, it may be time to take a fresh look at how the process is working — and whether it’s helping or hindering your goals for efficiency, compliance, and customer experience.

Looking to streamline your home equity closing process?

CSS partners with regional lenders to provide flexible, reliable closing coordination services that reduce risk, improve turnaround times, and create a smoother experience for borrowers. If you’re interested in learning more, reach out to our team — we’re happy to walk you through how it works.