January 3rd, 2014 9:26 AM by Jackie A. Graves
As the next step in its "Know Before You Owe" initiative the Consumer Financial Protection Bureau (CFPB) plans to look at what goes on at the home purchase closing table. CFPB says the closing process is one that can be stressful and confusing for consumers and is often their last opportunity to gain information and understanding of a major long-term financial commitment. CPFB wants to obtain more information of what in the process consumers find to be most problematic.
In a notice to be published today in The Federal Register the Bureau is inviting public comments on consumer "pain points" at closing. This is the first step in several initiatives to test and study ways in which the closing process might be improved through market innovations and technology.
CFPB is seeking general information as well as answers to 17 specific questions about closings and consumer preparation for the event, the types of errors and changes that occur, the role of other parties in the process, paperwork, and consumers' comfort with the process. CFPB is hoping for responses from a broad away of participants including consumers, mortgage lenders and servicers, real estate professionals, housing counselors, real estate attorneys, settlement agents, consumer and community advocates, and any other interested parties.
Respondents are encouraged in their comments to address the general subject areas as well as the specific questions therein:
Consumers and Closing
Errors and Changes at Closing
Other Parties at Closing
The Bureau said it hopes the responses, which must be submitted on or before February 7, will lead into a project to increase consumer knowledge, understanding, and confidence at closing as the mortgage industry increases its usage of technology, electronic signatures, and paperless processes.
More info on submitting a response can be found at the Federal Register.