By, Mikel Dunnagan
As seen in a recent CFPB blog post, the Bureau conducted a study using a pilot program incorporating many of the CFPB’s tools. This study included the new-fangled technology known as “e-closing.” Although the sample of borrowers was small, the Bureau proudly reports that the empowerment, understanding and efficiency of these borrowers exceeded that of borrowers faced with a traditional mortgage loan closing.
Utilizing the power of technology has demonstrated the potential to simplify the closing process and empower consumers with improved organized information, more time to review that information and the ability to embed educational resources.
Some valuable insights learned by the Bureau are as follows:
· Ask for closing documents before you get to the closing table. Borrowers who did this were less confused by the mortgage process than those who did not review their documents prior to closing.
· Take time to review your closing documents in advance. Borrowers conveyed that reviewing documents ahead of closing made them feel less anxious and not as rushed when it came to closing.
· Know about the mortgage process before you owe. Consumers who took advantage of the CFPB’s educational tools were more likely to feel as though they played an active role in the closing process than those that did not.
Designed to benefit borrowers, enabling them to feel empowered, efficient and underwhelmed, we applaud the CFPB’s findings and recommend the use of the Bureau’s mortgage tools which can be accessed via the following URL: http://www.consumerfinance.gov/owning-a-home/.