Removing Barriers Blog

CUNA Attends eClosing Forum with CFPB Director Cordray
Posted August 05, 2015 by CUNA Advocacy

The CFPB held a forum today on their eClosing pilot project on electronic mortgage closings as part of their Know Before You Owe Initiative.  The forum featured remarks by CFPB Director Richard Cordray and FHFA Director, Melvin L. Watt, together with a panel discussion with consumer groups, industry representatives, and members of the public.  On the panel for credit unions were Amy Moser of Mountain America Credit Union and Lorraine Stewart from Boeing Employees Credit Union.  Both Moser and Stewart shared their experiences running the pilot program. CUNA’s Senior Director of Advocacy & Counsel, Andy Price attended on behalf of CUNA.

The CFPB unveiled its findings of the eClosing pilot project in a report entitled “Leveraging technology to empower mortgage consumers at closing”, available here. The report indicated that consumers reported greater understanding, efficiency, and feelings of empowerment through the utilization of an electronic platform than those borrowers who used just paper forms.

Today’s report is another component of the CFPB’s “Know Before You Owe” mortgage initiative, designed to improve the home-buying experience for consumers. The CFPB recently moved the effective date for the “Know Before You Owe” mortgage disclosure rule to October 3, 2015.  The eClosing project is not part of a rulemaking process, but rather is intended to promote best practices in the marketplace.

CUNA actively participates with the CFPB in all phases of the rulemaking process.  CUNA continues to urge the CFPB to publicly clarify the applicability of the “small creditor exemption” under the Know Before You Owe rules in which their currently exists a discrepancy between the CFPB’s supplemental information and actual TILA rule itself.  Approximately 700 credit unions may be subject to the rule but are otherwise unaware due to the CFPB’s miscommunication.

CUNA further is pressing the CFPB to provide a reasonable safe-harbor from legal liability through the end of the year to ensure a smooth and successful implementation of the regulation.