CFPB Publishes Results of eClosing Pilot Program

Morrison & Foerster LLP
Contact

On August 5, the CFPB released a 90-page report summarizing the results of its eClosing pilot program, a research initiative launched in April 2014 to explore whether electronic closing processes offer measurable benefits to mortgage borrowers. According to the CFPB, the pilot program was part of the agency’s overall “Know Before You Owe” campaign, through which the CFPB developed the TILA-RESPA integrated disclosure (TRID) regime. In the report, the CFPB pointed out eClosings may benefit borrowers by making them feel more empowered during the closing process, and the CFPB encouraged the industry to “explore eClosing as a promising option for customers.”

For the pilot, the CFPB enlisted the help of seven lenders, five technology companies and dozens of settlement agents and real estate professionals in a cooperative effort. The CFPB recognized and commended the time and effort of the participants, given the relatively short turnaround time for completing the data-gathering phase. In total, the CFPB collected data on 3,292 loans, some of which the parties closed with traditional paper documents, and others of which the parties closed with either all electronic documents or a combination of electronic and paper documents ("hybrid transactions"). The CFPB received post-closing survey responses from 1,254 borrowers, 60 of whom participated in follow-up interviews.

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Written by:

Morrison & Foerster LLP
Contact
more
less

Morrison & Foerster LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide