Sierra Pacific Mortgage Company, Inc. recently partnered with the Consumer Financial Protection Bureau (CFPB) in their national eClosing pilot program – a program that presents homebuyers with their documents in electronic format via a secure link to an eSign portal three days before their actual signing appointment, which allows them more time to review their documents and prepare questions.
“Sierra Pacific has had great success with this new process,” says Sierra’s CIO Jim Connell. “Our loan officers have noted that eClosing took less time than paper closings, our document package was very user-friendly, and most importantly, our borrowers were happy with the ease of this process.”
The electronic process also provides homebuyers with new tools and resources to ensure better overall comprehension of their closing documents. During the signing appointment, the homebuyer signed and submitted their electronic documents via a tablet or smartphone device.
The eClosing pilot is part of the CFPB’s “Know Before You Owe” mortgage initiative, which is designed to improve the home-buying experience for consumers. This initiative includes the impending Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA) Integrated Disclosure (TRID) rule. The TRID ruling will come into effect August 1, 2015.
Sierra Pacific was one of a handful of mortgage lenders to participate in the program and is excited to help pave the way for the mortgage industry to use advanced technology to provide more comprehensive and efficient service, says Connell.
“We worked diligently with our vendors to ensure participation in this program,” he says, “agreeing to additional requirements and disclosures.”
The eClosing pilot program, designed to test the effectiveness of providing homeowners with electronic files to better understand their closing documents, and streamline the closing process, has found another mortgage partner.