Closing can be very stressful. All that check writing and paperwork can leave even the most collected person a nervous wreck. The Consumer Financial Protection Bureau recognizes the strain some homebuyers experience during the closing process. As a result, the bureau has highlighted some of the deficiencies in the current closing process and has suggested a new Electronic Closing pilot project.
In a report titled “Mortgage Closings Today,” the CFPB shines a light on the problems consumers have experienced while finalizing their home purchase. The CFPB also outlined how technology could assist homebuyers with the process. The study finds that many consumers are frustrated by the insufficient amount of time they are given to review closing documents. They are also overwhelmed by the closing paperwork as well as the complexity of the documents and errors.
Said CFPB Director Richard Cordray in a written statement, “mortgage closings are often fraught with anxiety. We have taken action to address some of the problems consumers face, but more needs to be done. Our eClosing pilot project will provide valuable insight into how to improve the closing experience for consumers. ”
The CFPB report is part of its “Know Before You Owe” mortgage initiative, which has a goal of providing a better home-buying experience for consumers. Last November, the bureau issued a rule requiring mortgage disclosure forms that are easier to use. The Bureau is making an effort to implement this rule in August 2015. The CFPB says today’s report is meant to promote best practices in the marketplace.