Just like community banks, many consumers are frustrated by the short amount of time they have to review large stacks of complex closing documents when finalizing a mortgage, according to a recent Consumer Financial Protection Bureau report.
The CFPB also released guidelines for an upcoming electronic-closing pilot project to assess how electronic mortgage closings can benefit consumers. The bureau said eClosings can lead to more knowledgeable consumers and a more efficient closing process, although it said eClosings risk reducing the amount of time consumers spend reading their closing documents. The report and guidelines are part of the CFPB’s “Know Before You Owe” initiative.
Earlier this year ICBA and the CFPB field-tested new Truth in Lending/Real Estate Settlement Procedures Act disclosure forms on live transactions to identify any possible problems that could cause closing delays. Additionally, the association has
recommended that the bureau work with the banking industry and other agencies to curb the numerous extraneous documents that consumers must sign during the mortgage closing process.