The Consumer Financial Protection Bureau 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 aimed at improving the homebuying experience for consumers through simpler disclosure forms as proposed in a rule first issued in November last year. The rule is scheduled to be implemented in August 2015. Through its study of eClosing processes at the participating 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.
Foreclosure sales are way down nationwide for the second quarter of 2014 with close to 115,000 reported, according to data released earlier in the week by HOPE NOW. It was the lowest number of foreclosure sales reported for any quarter since HOPE NOW began tracking foreclosure data in 2007. The data indicates that foreclosure sales were down 9 percent from the first quarter and 27 percent year-over-year. Also in the second quarter, the number of foreclosure starts fell 8 percent from the first quarter and 38 percent from the second quarter of 2013.