On August 5, 2015, CFPB Director Richard Cordray lauded the results of a pilot project that explored online mortgage closings. The project found that consumers who closed their mortgage using an electronic platform were better off on measures of understanding, efficiency, and feeling empowered. In addition, Cordray noted that eClosings hold much promise of greater efficiency and accuracy for the mortgage industry, at potentially lower cost.
The CFPB’s eClosing pilot project was initiated in 2014, to focus on the consumer experience. The project took place over a four-month period and involved seven lenders and four FinTech companies, as well as settlement agents and other real estate professionals.
Starting in October 2015, the mortgage industry will be providing redesigned disclosures pursuant to the Bureau’s “Know Before You Owe” mortgage disclosure rule, and Cordray expressed hope that the pilot project and its findings would spur further industry action and innovation in the eClosing process.