By Rachel Witkowski / National Mortgage News
WASHINGTON — The Consumer Financial Protection Bureau has ramped up its push for the mortgage industry to switch to an electronic closing process after results from a pilot program showed consumers favored it over in-person mortgage closing.
During a CFPB forum Wednesday about the results of a four-month pilot program, Director Richard Cordray repeatedly said that the eClosing process is a “win-win” for consumers and the industry. The agency found that consumers who tried it were more likely to give higher positive feedback scores on their understanding of the closing process, the efficiency of it and a sense of personal empowerment than the borrowers surveyed who used the traditional paper process.
“This is something that we think is the direction industry is intending and wanting to go. It is the future. But the future can be here much sooner than maybe it otherwise would be” and “we are on board with that,” Cordray said. “We think the advantages for industry, the efficiencies and accuracy that this kind of process will create can also incorporate some really consumer-friendly aspects, consumer education and the like. And on the whole, [it] can be a win-win on both sides of the closing table.” [Read more…]
