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CFPB Commends HUD’s Action to Improve Mortgage Closing Process

WASHINGTON, D.C. – Today, the Department of Housing and Urban Development (HUD) announced that they will be accepting electronic signatures on documents associated with Federal Housing Administration (FHA) mortgage loans.

In November 2013, the CFPB finalized its “Know Before You Owe” rule that improves the information consumers get when they’re shopping for a mortgage and signing on the dotted line. As part of the Bureau’s effort to make sure these rules are effectively implemented, the CFPB is taking a deeper look at the overall mortgage closing process. In January, the Bureau began soliciting public feedback on ways that the mortgage closing experience can be improved for consumers and industry alike.

“We commend HUD for taking this important step toward improving the mortgage closing experience for consumers,” said CFPB Director Richard Cordray. “Buying a home is one of the biggest financial decisions most people will make in their lifetimes, but navigating the complicated closing process can be a challenge. Electronic closing processes have the potential to reduce errors, limit unexpected surprises, and create more time and opportunity for consumers to review critical documents with the tools they need to make informed decisions. HUD’s decision to accept electronic signatures for FHA loans can help jumpstart the move towards a more seamless, paperless, and consumer-friendly process.”

HUD’s announcement follows a key circular released by the Department of Veterans Affairs in August of 2013 clarifying that electronic signatures are acceptable for use in conjunction with the VA Home Loan program. The CFPB appreciates the productive and ongoing collaboration with VA, HUD, and other agencies to find new ways to help improve the mortgage closing process.

The CFPB’s Request for Information Regarding the Mortgage Closing Process is available at:

Video released at Know Before You Owe Hearing:

The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit