Politics & Money

Pavaso readies for CFPB pilot program with Digital Close

Successful digital transactions pave the path for application

Pavaso has successfully completed its first live housing transactions using its Digital Close platform, the company said, ahead of the May 14 deadline to apply for the Consumer Financial Protection Bureau's pilot program on eClosings.

"Our Digital Close opens up a world of opportunity for stakeholders to come together to better serve the consumers, to automate compliance and to increase efficiency while driving down costs," said Chris Ayoub, Pavaso's chief operating officer. "This is critical at this point in time, when the volume of originations is at an all-time low, and the cost of originations is at an all-time high."

The CFPB announced in April that it would conduct targeted research through a pilot program on eClosings, starting in October, to "leverage technology to solve some of the issues that cause frustrations for both consumers and professionals in the mortgage closing process," according to the program guidelines.  

Samuel Gilford, CFPB spokesperson, said the agency has received "considerable interest" from companies who want to participate. To qualify, electronic closings must meet these minimum requirements:

  • Managing document and data transfer
  • Providing a secure technology platform enabling transparent, collaborative workflow
  • Facilitating electronic signature
  • Ability to audit
  • Ability to sanitize data

Companies will also have to provide enough consumers involved in the pilot to produce a data sample that is large enough for meaningful analysis, the guidelines state.

Ayoub said Pavaso's Digital Close platform is ready.

"From the time the buy-sell agreement is submitted through our system, all the way to closing and post-closing, our process is creating a repeatable audit trail," Ayoub said. "It's much more than a 'click here' or and 'sign here' closing. Our Closing Forensics and Mortgage DNA travel digitally within the loan documents to provide a digital replay of the history of the loan package."

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