Technology is transforming everything. Soon, consumers will find themselves being offered platforms that allow borrowers to access mortgage closing documents online.
The new form is part of our Know Before You Owe mortgage disclosure rule that’s making the mortgage process work better for you. The Loan Estimate uses clear language and design to help you understand the key features, costs, and risks of a loan offer you’ve received from a lender.
You have the right to compare offers and understand the terms before you sign on the dotted line. After four years of work, these new forms and tools will help you shop for the best deal and avoid costly surprises when you sign on the dotted line.
Today, we held a forum on our Know Before You Owe eClosing pilot findings here at the CFPB. The forum featured remarks from Director Richard Cordray, as well as a panel discussion.
Today we’re releasing the results of a pilot program where we explored tools and process changes that can help consumers better navigate closing by accessing and signing their closing documents in different ways. Specifically, we examined what would happen if there was more technology involved in the mortgage closing process, with documents being delivered electronically earlier together with online tools and resources. The electronic delivery and signing of closing documents using electronic signatures is sometimes referred to as eClosing.
We asked you to tell us about pain points in the mortgage closing process and through this research and interviews, we’ve heard about four major pain points. We’ve got some ideas for how technology can improve the process and we’ll test them to put you in the driver’s seat of your mortgage closing. Read more about the current pain points and our e-closing pilot solution.
We’re holding a forum to discuss the mortgage closing process at 2:30 p.m. EDT. The event will feature remarks by Director Richard Cordray and Housing and Urban Development Secretary Shaun Donovan. The forum will also include a panel discussion with CFPB staff, consumer groups, and industry representatives. We’re livestreaming the event so you can follow along. Watch the livestream of the forum.