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Closings need less paperwork, says 69-page CFPB report

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Mortgage Professional America | 24 Apr 2014, 09:02 AM Agree 0
The CFPB has issued a 69-page report on the need to reduce closing paperwork. The report touts the benefits of "e-closings" as an alternative
  • TimK | | 24 Apr 2014, 09:25 AM Agree 0
    Haven't any of them purchased a home recently?

    Seriously, they needed to do a study to determine that there were too many pages of paperwork. But then again they were the ones behind the GFE going to multiple pages when the old one pager had everything you needed to know, if you just read it. But therein lies the problem, one page or 100 - if nobody reads any of it, what difference does it make?
  • ronald laprade | | 24 Apr 2014, 09:30 AM Agree 0
    Just a comment customers don't read the edocs for disclosures ...even when I ask them to ...
  • S Johnson | | 24 Apr 2014, 09:34 AM Agree 0
    Is this not the same director that wanted to add another 43 pages of mortgage documents last year to our mortgage packages?
  • Griff | | 24 Apr 2014, 09:42 AM Agree 0
    Amusing, the new 8 pages that explains the closing part of the borrowing process is sure not to help with this situation. The biggest problem we have is agencies like cfpb increasing the paperwork. Two page settlement sheet worked great. Everything was listed line by line.

    Bankers disclose differently than brokers, so the whole process is difficult. The cfpb has no problem confusing consumers with the concept brokers show all the income in the transaction and bankers none.

    Consumers have no idea what all that means. E-closings sound great, but how will consumers even begin to grasp what they are e-signing? How about the cfpb ask the question of whether the consumer gets 3 days to look at closing docs or would rather close before they lose a rate lock or miss a house payment. Amusing or Amazing?
  • TimT | | 24 Apr 2014, 09:43 AM Agree 0
    I know an industry rep from NJ spoke to Cordray about this over about 18 months ago. The guy asked CFPB to consider a National mortgage application and closing docs, that were co-ordinated with Fannie, Freddie and Gov's.

    When you compile all the Fed, State and lender disclosures the application can reach 150+ pages. Closing is not much better, but having 8 page mortgages with one lender and 6 page ones with another, signifies that something is amiss.
  • Joe | | 24 Apr 2014, 09:48 AM Agree 0
    Finally, something that Cordray and I can agree on.
  • TODD | | 24 Apr 2014, 10:07 AM Agree 0
    What a joke,....any time you add govn't "oversight"/over regulation, you get this. They< BOMB ADMIN>, DODD/FRANK, WARREN....etc...have caused this less then chipper environment.
  • W. Redel | | 24 Apr 2014, 10:43 AM Agree 0
    The amount of paper is an "effect". The "cause" is too many redundant conditions, rules & regulations from multiple government agencies at both the federal & state levels plus the overlays required by investors. An FHA mortgage in 2007 had approximately 30 pages in the closing package. Same mortgage today can easily have over 100. One big part of that is the overwhelming number of disclosures
  • John Rogers/jer/oh | | 09 May 2014, 08:36 AM Agree 0
    Richard is a good man but I wonder how many NSA's were involved in contributing to the 69-page report? Has he looked at SS's, TC's, lenders, to determine their often disfunctionality i.e. rushing a closing to get their fees, consistent late doc arrival, errors on docs, mis or lack of accurate information, low fees for 150 plus pages and no review time? Is he aware that the NSA is usually the only "live" body bo's ever see?
    If "customer/borrower" service is the goal, the cfpb needs to meet with NSA's...we can tell them what the problems are in no uncertain terms as well as corrective measures to resolve many cs issues. jer/oh
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