August 24, 2014

Two CUs in eClosing pilot program

Two credit unions are set to participate in CFPB's three-month mortgage eClosing pilot program – set to begin later this year – that will explore consumer, lender and other market participant responses to the increased use of technology in the mortgage closing process.

"Mortgage closings can be stressful, confusing, and overwhelming," said CFPB Director Richard Cordray in a statement. "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."

Participants in the program consist of technology vendors and creditors, including Accenture Mortgage Cadence, Boeing Employees Credit Union and Mountain America Credit Union, among others.

During the pilot program participants will study eClosing features and benefits, including:

  • new consumer education materials;
  • technologies that allow consumers to see the entire package of closing documents ahead of time; and
  • the time and money saved by using electronic closings.

This pilot program is part of CFPB's "Know Before You Owe" mortgage initiative. The "Know Before You Owe" mortgage rules take effect next August and require that closing documents be shared with consumers three days in advance as well as new Truth in Lending Act and Real Estate Settlement Procedures Act integrated disclosure forms.

"NAFCU is pleased to see credit unions participating in this program and looks forward to getting more involved as the program progresses," NAFCU Regulatory Affairs Counsel Angela Meyster said.