WASHINGTON (4/24/14)--The complexity and size of mortgage closing document packages, and the short amount of time given to review those documents, are creating issues for homebuyers, the Consumer Financial Protection Bureau said in a report released Wednesday. The bureau has reacted to these reported issues by planning a new pilot program that will examine how technology can be used to ease the closing process.
The CFPB report, "Mortgage closings today," was developed through examinations of consumer complaints--or mortgage-closing "pain points." The report notes consumers are:
"When the CFPB's new Know Before You Owe mortgage rule takes effect, it will address some of these challenges" the bureau said in a Wednesday release. "However, this rule does not apply to any of the other paperwork consumers receive at the closing table. The bureau only has jurisdiction over a few forms in the closing stack. More needs to be done to improve the closing experience for consumers," the CFPB release added.
Electronic closings (e-closings) may be one way these closing issues can be avoided, and the overall process can be improved, the CFPB said. E-closings are being used in some instances but have not been widely adopted, the CFPB said.
As part of its pilot program, the CFPB said it plans to:
The goal of the project is not to write a new rule, the CFPB said.
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