The Consumer Financial Protection Bureau (CFPB) has designed its “Know Before You Owe” mortgage initiative to improve the home-buying experience not only for consumers, but also for financial institutions (FI). The press release accompanying the April 2014 report on this initiative mentions, in passing, that the CFPB “asked for input from market participants… and other stakeholders”. The release also states that the CFPB “continue to work collaboratively with all stakeholders, including other regulators, to implement its new rule for mortgage disclosures and improve the mortgage closing experience for consumers.”
The press release neglects to point out that “Know Before You Owe” also impro mortgage closing procedures for FIs. The report download page makes a vague allusion to this by stating that the CFPB has “committed [itself] to work on improving the process for everyone involved.” However, the emphasis remains on bettering the process for the consumer.
In the introduction to the report, CFPB Director Richard Cordray states “there may be opportunities to leverage technology in order to solve some of the issues that cause frustrations for both consumers and professionals in the mortgage closing process.” Today's closing procedures are, for instance, costing FIs millions of dollars in paper, storage, and lost man-hours.
In the scope of the CFPB’s accompanying eClosing pilot project, FIs can comply with “Know Before You Owe” in an efficient, cost-effective manner. To accomplish this they can simply implement a comprehensive web-based video communication and electronic signature platform into their online channels.
All mortgage closing participants can not only meet and complete documents through this platform, all required signers can review and sign these documents sequentially during the same call. This unique feature provides consumers, FIs, and other stakeholders in the mortgage process unparalleled convenience, savings, and peace of mind. The benefits of this pioneering browser- based communication solution to consumers in the context of the CFPB initiative include:
Location-based call routing and HD video calling deliver personalized convenience that reduces stress and time pressure.
Document sharing and real-time collaboration allow for early document review with a financial expert.
A swift and secure electronic signature process gives consumers even greater convenience, carried out in the setting, and on the device, of their choice.
FIs also gain considerable advantages from online video calling and real-time collaboration with integrated electronic signature. For example:
Document sharing and collaboration eliminates paperwork errors, and associated costs and delays.
Multipoint calling allows additional parties to join calls, enabling branches to provide mortgage expert services remotely.
By empowering consumers to be more active participants in online closing procedures, FIs can recoup lost man-hours and boost efficiency and productivity.
While “Know Before You Owe” is clearly based on the consumer need for greater transparency and education in the mortgage closing process, it also has the potential to cut costs and boost revenues for FIs – especially those that choose their eClosing solution wisely.
eFace2Face can help your financial institution improve its mortgage closing process quickly and cost-effectively. Meet eFace2Face CEO Dave Patten online to learn more.