The Consumer Financial Protection Bureau (CFPB) unveiled this week its list of companies selected to participate in the agency's mortgage eClosing pilot program designed to measure the benefits of electronic mortgage closings and determine best practices.
The pilot was first announced in April, when the bureau put out a report detailing what it calls the "pain points" of the loan closing process. Through its three-month pilot, set to begin later this year, CFPB says its hopes to explore how technology can affect consumer understanding and engagement and save time and money for all parties.
The program's launch marks a big step in the agency's "Know Before You Owe" mortgage initiative, which is aimed at improving the homebuying experience for consumers through simpler disclosure forms as proposed in a rule first issued in November last year. In Thursday's release, CFPB announced it is in the process of preparing for that rule to be implemented in August 2015.
"Mortgage closings can be stressful, confusing, and overwhelming," said 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 insights as we work to improve the closing experience for consumers," he continued.
The companies named in Thursday's announcement include a range of vendors, including: Accenture Mortgage Cadence; DocMagic, Inc.; eLynx; Pavaso, Inc.; and PiersonPatterson, LLP.
The lenders included in the announcement are: Blanco National Bank; Boeing Employees Credit Union; Franklin First Financial, Ltd.; Flagstar Bank; Mountain America Credit Union; Sierra Pacific Mortgage; and Universal American Mortgage Company.
Through its study of eClosing processes at those firms, CFPB said it hopes to gain insight as to how technological solutions can aid consumer understanding of loan documents and processes; incentivize consumer engagement through early document review; and make processes more efficient overall.