Recently, the Consumer Financial Protection Bureau (‘CFPB’) announced that they will launch a new electronic closing (eClosing) pilot program in order to explore new avenues to make the closings less complex for consumers. This is in response to a report that the CFPB published wherein they found that consumers felt they did not have enough time to review closing documents and found the documents difficult to understand. To lessen these frustrations, the CFPB will begin to roll out the eClosing system with a few pilot participants. A pilot ‘participant’ signifies a partnership between a technology vendor providing an eClosing solution and a lender that has contracted with the vendor to close loans using that solution. The CFPB believes eClosings will offer more flexibility to provide documents to consumers prior to closing with embedded educational tools to highlight key information or provide resources.
Read more on the CFPB website.