The CFPB announced on Wednesday plans to launch an eClosing pilot program in the fall to evaluate various solutions that may be used to improve the mortgage closing process for consumers.
“The pilot program will assess and advance electronic closings and test our vision for additional educational tools that can be incorporated to benefit consumers,” CFPB Director Richard Cordray said at the Mortgage Closing Forum in Washington, D.C. “Our goal will be to determine how the eClosing process can be made to reflect the spirit of our Know Before You Owe rule by generating increased consumer understanding, fewer surprises at the closing table, and a more empowered consumer.”
The agency said eligible pilot participants will include lenders already contracted with technology vendors to use an electronic closing solution and lenders with in-house closing solutions that are similar to currently available technologies.
Interested participants must use electronic closing technology that meets the CFPB’s technical functionality requirements: managing document and data transfer, facilitating electronic signatures, the ability to audit, interactive collaborative workflow and the ability to sanitize and protect sensitive data.
Additionally, the CFPB said pilot participants are encouraged to include additional features that may not be available in currently available electronic closing platform.
“[W]e plan to identify best practices that we can share industry-wide to the benefit of consumers,” Cordray said. “We will use the results of the pilot program to foster a high-quality dialogue about the merits of eClosing.”