Electronic Mortgage Closings Next Hot Thing?
April 24, 2014
The Consumer Financial Protection Bureau says it plans to test electronic mortgage closings, which the agency hopes will give consumers more time to review mortgage documents prior to closing and make it easier for borrowers to spot any errors.
"We strongly believe that electronic closing solutions, known as eClosings, can lead to more knowledgeable consumers and a much better process for everyone involved," says CFPB director Richard Cordray.
CFPB will be running a series of pilot tests over the next 15 months to gauge the benefits of eClosings to consumers. The agency says it wants to find ways to make mortgage closings more efficient and eliminate unexpected surprises to borrowers.
“Some lenders are already offering eClosing solutions,” Cordray says. “We plan to work with them to explore how we can best facilitate and secure the benefits of this new-and-improved approach.”
Source: “U.S. Consumer Bureau to Test Electronic Mortgage Closings,” Reuters (April 23, 2014) and “CFPB Pushes for eClosings,” HousingWire (April 23, 2014)
Updated: June 21, 2018