Mortgage borrowers who had access to electronically viewed and signed documents at closing — or “eClosings” — felt more empowered, understood the process better and saw greater efficiencies, according to a pilot program conducted by the CFPB at seven lenders.
The pilot showed that customers who received and reviewed documents electronically prior to closing demonstrated greater understanding of the process than those whose closing relied on paper documents. The improved eClosing outcomes were more pronounced for homebuyers making purchases than for those refinancing, the CFPB said, and closing meetings were much shorter with eClosing since borrowers had time to review documents in advance.
The CFPB also found that first-time homebuyers and low-to-moderate-income borrowers scored the biggest gains by using eClosing, although their scores of understanding and empowerment remained relatively lower.
Read the report.