Cordray touts eClosings initiative
April 24, 2014 – At the CFPB forum on the mortgage closing process Wednesday, bureau Director Richard Cordray focused on CFPB’s planned “eClosings” pilot program to help consumers through the process.
Speaking at the event, held in Washington, Cordray said the program is part of the bureau’s larger “Know Before You Owe” initiative and is an attempt to use technology to help consumers closing mortgages.
“There are several ways that eClosings can pave the way for a more efficient process that is also more empowering for consumers,” Cordray said. “Electronic documents can make early delivery more convenient and simple – giving the consumer time to read the documents, consult with family members or professionals, and ask the lender questions … And shifting to an electronic process should lead to greater consistency and accuracy, since automated processes can make it easier to detect discrepancies.”
Cordray released the guidelines for the program, which he said will launch in the coming months. NAFCU member Mountain America Credit Union was on the panel of industry and regulatory representatives. Mountain America was the first financial institution to close a Federal Housing Administration insured loan with e-signatures.
NAFCU Regulatory Affairs Counsel Angela Meyster also attended the forum. In February, NAFCU, based on comments from its members, urged CFPB to further consolidate and simplify the mortgage disclosure documents required at loan closing to make the information easier for consumers and lenders to understand.
Earlier this month, CFPB released a guide to completing the new Truth in Lending Act and Real Estate Settlement Procedures Act integrated disclosure forms.
Richard Cordray's remarks
CFPB blog on mortgage closing
CFPB TILA-RESPA guide
CFPB Small Entity Compliance Guide
NAFCU compliance resources