By Michael Lewis
There’s a week left to offer your insights and suggestions to the Consumer Financial Protection Bureau on how the loan closing process can be improved for the consumer. The CFPB is seeking comments in an ongoing effort to protect consumers by identifying and remedying borrower’s key “pain points” during mortgage closings through market innovations and technology.
Industry professionals, borrowers and other interested parties are being encouraged to submit comments by February 7, 2014, in order to test and study ways in which the closing process can be improved. The CFBP is requesting specific comments on 17 questions, including:
- What are the common problems or issues consumers face at closings?
- How long does the closing process take?
- What are the common errors encountered at closings?
- Do borrowers review loan forms beforehand?
- Where and to whom do consumers turn for advice during closing? Whom do they typically trust?
So far, the CFPB has received nearly 200 comments. One of the most common issues mentioned is the lack of time borrowers have to review and understand loan documents. Comments from signing agents indicated that borrowers often do not see the final loan documents until the closing.
One commenter said the hardest part is “seeing in the borrowers’ faces and by their reactions that what you were telling them was not what they were expecting. But they are aware that if they do not sign the documents they will not get the loan, so they sign anyway.”
If you or someone you know wishes to leave feedback, instructions can be found in the online announcement.
Michael Lewis is Managing Editor at the National Notary Association.