WASHINGTON (8/22/14)--Two credit unions have been selected as participants for the Consumer Financial Protection Bureau's (CFPB) mortgage eClosing pilot program.
BECU, Tukwila, Wash., with $12.6 billion in assets, and Mountain America CU, West Jordan, Utah, with $3.8 billion in assets, will participate in the three-month program, slated to begin later this year.
The program is designed to explore how the increased use of technology during the mortgage closing process could affect consumer understanding and engagement.
"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," said CFPB Director Richard Cordray.
The pilot project is a follow-up to a report released in April by the CFPB that outlined areas of difficulty in the closing process, and offered a vision for how electronic closings could help mitigate some areas. The project will study ways eClosings can enable consumer understanding, make processes more efficient and incentivize consumer engagement.
In addition to the two credit unions, two banks, three mortgage companies and five technology vendors that provide eClosing services will participate.
According to the bureau, the eClosing pilot program is not part of a rulemaking process, but is designed to identify best practices in the marketplace.
Use the resource link below to access guidelines for the program.