Fannie Mae survey suggests lenders eye eNote growth in 2025

Fannie Mae on Thursday published the results of its latest Mortgage Lender Sentiment Survey. The report details lender experiences with eMortgage technology, including challenges to date, adoption plans and business priorities for 2025.

The survey found that while most lenders (75%) are familiar with eNotes, only 22% currently use them. The top challenges cited to eNote adoption include a lack of support and/or low acceptance from key investors and business partners.

But 62% of respondents say they expect to adopt the technology within the next two years.

Fannie Mae reported there were more than 2.5 million unique eNotes registered on the Mortgage Electronic Registrations Systems (MERS) eRegistry as of April 1, 2025. The current study draws insights from a total of 240 senior executives, representing 217 lending institutions, who completed the survey between April 29 and May 9 of this year.

Lenders, regardless of their current eNote usage, say that the top benefits of using eNotes are improved operational efficiency (49%) and an enhanced borrower experience (47%).

Another challenge for lenders lies within remote online notarization (RON). The survey found that 40% of lenders consider the lack of uniformity in RON legislation across states as either the first or second biggest challenge for adoption of full eClosings through RON. More than one-third also say that low acceptance of RON is a challenge.

As for In-Person Electronic Notarizations (IPEN), lenders consider the availability of IPEN capabilities by settlement partners; unclear or low investor acceptance; and
lack of familiarity with IPEN as their biggest challenges in the use of full eClosings that utilize IPEN.

Business and economic outlook

For 2025, lenders ranked business process streamlining (39%), cost reduction (29%) and consumer-facing technology (27%) as their leading priorities. These overtook talent management and leadership, which topped the list in 2024.

Among lenders that are considering cost cutting as an important business priority this year, a slight majority plan to focus on cutting back-office staff. But significantly fewer lenders in 2025 plan to cut expenses compared to last year, the survey found.

Compared to 2024, lenders’ outlook towards the economy improved significantly, continuing a trend of increased optimism for the fourth consecutive year. Consumer sentiment has also grown less pessimistic since last year.

While lenders seem to be thinking more positively about the economy, most believe it is difficult for consumers to get a mortgage, a sentiment that has remained at historically elevated levels since 2022. Perceived difficulties continue to be higher among lenders than consumers.