We have been scanning and burning the docs to CD for a couple of years now.  What do a little different is give them a paper copy of the HUD, the Settlement Statement, the first payment information and a Thank you letter in a small jacket.  All scanned docs are in PDF format, we have found most people have Adobe Reader on their computers.  Originally were tried using mini disks (so there's not so much wasted room on the CD) but found that people had an easier time accepting the full size CDs.

If someone does want printed copies, we have a minimal extra charge for it.  We have had some clients come back with paper documents, and requested them to be scanned and put on disk when they found out we did the scan to disk.