Watch the CFPB hearing on mortgage closings LIVE
CFPB open hearing now
HousingWire will be covering the CFPB's mortgage closing forum in Washington, D.C. this afternoon at 2:30 p.m. ET, featuring remarks by Cordray, Housing and Urban Development Secretary Shaun Donovan and senior federal officials.
You can view the live event as it happens below. HousingWire will be hosting the archived event after.
The event will feature remarks by Director Richard Cordray and Housing and Urban Development Secretary Shaun Donovan. The forum will also include a panel discussion with CFPB staff, consumer groups, and industry representatives.
The Bureau heard about three major pain points for consumers:
1) Not enough time to review
Many consumers are frustrated by the short amount of time they have to look over the closing documents. Often, they do not see the paperwork until they arrive at the closing table. Consumers reported feeling pressure to rush through the paperwork and sign—even when they did not understand the terms.
2) Overwhelming stack of paperwork
When consumers close on a home, they often face stacks of paperwork. Some of the forms are intended to help consumers better understand the costs and risks of their mortgages. Other forms are included by lenders as a result of their legal risk assessments. Remaining forms may fulfill federal, state, and local government requirements. The volume of paperwork varies from lender to lender.
3) Complexity of documents and errors
Most closing documents are full of legalese and technical jargon. The terms and acronyms are unknown to most consumers. In addition to having little time to read through and understand a large stack of paperwork, consumers often complained that they had little help from the others in the room. Consumers also mentioned that they found errors in their closing documents. Those errors often led to delays as closing agents had to redo the entire closing package.