By Brena Swanson
Group explores benefits of technology in mortgages
It was competitive and now it's here.
The highly anticipated list of participants in the Consumer Financial Protection Bureau’s mortgage eClosing pilot program was officially released Thursday.
The selected few will kick start the exploration of the increased use of technology during the mortgage closing process and how it could affect consumer understanding and engagement and save time and money for consumers, lenders and other market participants.
The list is comprised of:
- Accenture Mortgage Cadence
- Blanco National Bank
- Boeing Employees Credit Union
- Franklin First Financial
- Flagstar Bank
- Mountain America Credit Union
- Sierra Pacific Mortgage
- Universal American Mortgage Company
“Mortgage closings can be stressful, confusing, and overwhelming,” said CFPB Director Richard Cordray. “We believe that eClosings have the potential to create a better process for everyone involved. This eClosing pilot project will provide valuable insight as we work to improve the closing experience for consumers.”
The process was announced back in April as part of the CFPB’s Know Before You Owe initiative, in order to improve the mortgage closing experience for consumers.
Under the new initiative, which takes effect August 2015, it is now required for closing documents to be shared with consumers three days in advance. Through the new program, the CFPB can better monitor how the early review will impact the consumers’ experience in the closing process.
"Lenders are now ready for a completely paperless loan closing process,” DocMagic President and CEO Dominic Iannitti said.
"Digital Close from Pavaso is designed to be a neutral technology platform that seamlessly integrates with other systems. That, along with DocMagic's eSign, eVault and eDelivery offerings, provides a fully supported, shrink-wrapped solution for anyone to do an eClosing,” Iannitti said.
The CFPB is working with lenders that are already offering eClosing solutions to see how it can best facilitate and secure the benefits of the new and improved approach.