WEST JORDAN, Utah, and TUKWILA, Wash. (9/4/14)--Representatives from both Mountain America CU, West Jordan, Utah, with $3.8 billion in assets, and BECU, Tukwila, Wash., with $12.6 billion in assets, are excited about participating in the Consumer Financial Protection Bureau's (CFPB) mortgage eClosing pilot program for several reasons, but for one reason especially: the program aims to make the mortgage process easier for members.
The technology behind eClosings makes the closing process more efficient for members, but it is also designed to protect the best interests of members throughout the disclosure process.
"The bottom line with this pilot is that there are going to be simpler and clearer disclosures for members--and that's whether they are eClosing or not," Scott Strand, BECU chief lending officer and senior vice president of member operations, told News Now. "What the eClosing does is facilitate a more efficient delivery of the disclosures."
"Education is a big piece of this program," said Amy Moser, Mountain America CU vice president of mortgage lending.
In the eClosing pilot, disclosures will be delivered electronically three days before scheduled closings as required by new CFPB disclosure regulations that take effect Aug. 15, 2015. Members can review the documents, and be prepared with any questions at the time of the closing. Instead of signing hundreds of documents at the closing, members appear before a public notary and provide a single electronic signature at the time of closing.
"Anyone who has been through the traditional closing process knows how much easier this is," Moser said.
"They walk out with a thumb drive instead of stack of papers," Strand added.
Both Mountain America CU and BECU have been offering eClosing for several years. The CFPB worked closely with their respective vendors in selecting participants. In addition to the two credit unions, two banks, three mortgage companies and five technology vendors that provide eClosing services will participate in the pilot.