In an effort to improve the consumer mortgage experience, the CFPB has announced a pilot program to test the feasibility of electronic closing procedures which could save both time and money. They’ve put together a group of lenders and tech experts to brainstorm and test ideas for new software options. The idea is to help educate consumers, encourage greater consumer participation, and streamline what is often a complex and inefficient process.
“Mortgage closings can be stressful, confusing, and overwhelming,” said CFPB Director Richard Cordray. “We believe that eClosings have the potential to create a better process for everyone involved. This eClosing pilot project will provide valuable insight as we work to improve the closing experience for consumers.”
The eClosing program is not intended to create or enforce new rules, but rather to increase consumer awareness and decrease predatory practices and preventable default situations.