BECU Chosen for CFPB’s eClosing Pilot
August 26, 2014
August 26, 2014
Last week the Consumer Financial Protection Bureau (CFPB) announced that BECU was among the financial institutions selected to take part in its mortgage eClosing pilot program. The three-month pilot, which will begin later this year, will test whether technology can improve consumer understanding of the closing process, incentivize higher consumer engagement and save all parties time and money.
BECU was among seven financial institutions and one of only two credit unions selected, along with Mountain America Credit Union in Utah.
“We are excited the CFPB selected BECU and Accenture Mortgage Cadence to participate in their eClosing pilot program,” said Scott Strand, senior vice president and chief lending officer at BECU. “BECU pioneered electronic closings in the Seattle market in 2008, and this pilot is a great opportunity to help increase eClosing adoption across the country.”
The pilot is a follow-up to an April report in which the CFPB outlined major pain points associated with the closing process, and offered a vision for how electronic closings could help streamline the process. Along with the report, the CFPB released a call for proposals for the pilot.
The CFPB’s interest in eClosing is part of its larger Know Before You Owe initiative, which seeks to make the mortgage closing process more transparent to consumers.
“BECU is very supportive of the CFPB’s Know Before You Owe initiative,” said Strand, “which will provide consumers with more clear and simple mortgage disclosures. By delivering the new disclosures with an efficient and timely eClosing process, we can really improve the mortgage experience for our members.”
As part of Know Before You Owe, the CFPB issued a new rule last November requiring two new, easier-to-use mortgage disclosure forms that make loan terms and closing information more clear. The CFPB is also working to improve consumer experience during the loan application process, exploring how technology can help consumers choose the best loans.
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Posted in Federal.