CFPB Pilots eClosings with Consumers
American Banker recently shared news that the Consumer Financial Protection Bureau (CFPB) has ramped up its push for the mortgage industry to switch to an electronic closing process after results from a pilot program.
The CFPB’s four-month pilot study showed that consumers who used eClosings had a 7 percent higher rate of positive feedback about their understanding of the quotes and final costs of the loan.
“eClosings are the future of mortgage industry,” said Fletcher Wilcox, VP Business Development, Grand Canyon Title Agency in Phoenix.
“I downloaded the ninety page study,” Wilcox continued, “and one of the findings said ‘early document delivery and review was associated with better measured outcomes in both paper and eClosing transactions, but the early delivery of documents occurred much more consistently in the eClosings.’
“The new October 3 [TRID] rule, in which the buyer has to have the Closing Disclosure three business days before signing, is already moving in the direction of the borrower having information earlier,” he added.
REALTOR® Magazine reported that consumers felt “less rushed” with the eClosing process and it was “more efficient” than reading and signing in-person at the closing table.
“Legal, regulatory and fraud factors will also have to be considered when moving toward eClosings,” cautioned Wilcox, “but it is a process that will happen over time.”
Wilcox also chairs the 2015 Industry Partners Conference on September 16. Click here to register for this event.Tags: CFPB, Consumer Financial Protection Bureau, eClosing, Fletcher Wilcox