260,000 trees a year for mortgage documents

Mortgages are important documents given how much money they involve yet they also consume a lot of trees according to one estimate:

According to the report, those seeking a mortgage encounter scores of paperwork — in some cases, more than 50 loan documents — including everything from an appraisal report to the loan application, topping out at an estimated 252 pages. Add in another 28 pages, approximately, for documents borrowers must provide such as pay stubs and bank statements…

Multiply 280 pages per mortgage by an average of 7.8 million mortgages a year — a figure from a recent Federal Reserve Bulletin — and what have you got?

That’s right: almost 2.2 billion sheets of paper annually from mortgages alone. That equals more than 41,000 tons of wood and over 260,000 trees…

A FreeandClear survey conducted in February polled homeowners ages 22 to 49 who have a mortgage. In one question, on the most taxing part of the mortgage process, 56 percent of respondents pointed to excessive paperwork.

Several quick thoughts:

  1. Remember all those predictions that we would move away from the world of paper? Even with the disadvantages it may have, it is pretty useful to have paper documents in a number of situations.
  2. I assume “excessive paperwork” is relative to “typical” amounts of paperwork people have to fill out. Is it a bit unrealistic to expect that a mortgage – a significant contract for the average borrower – shouldn’t have little paperwork?
  3. The 260,000 trees figure is supposed to be shocking and help us think more about the social problem of tree removal. All those trees just for mortgages?!? But, how many trees are cut down each year for paper? One source from a few years suggests it is over 4 billion trees each year. Time says 15 billion trees – for all uses – are cut down each year but this is out of a base of roughly 4 trillion trees overall. How about a look at how many trees are used for newspapers each year in the United States? Is this a more acceptable use of paper?

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