Consumer watchdog to roll out e-closings pilot project

Consumers frustrated with lack of time to review stacks of paperwork, jargon-filled documents

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Closing on a mortgage can be a frustrating, overwhelming and sometimes baffling process for consumers. That's why the federal Consumer Financial Protection Bureau has decided to launch a pilot project in which it will evaluate whether electronic closings can help consumers navigate the process better. The bureau has released guidelines for the project along with a report detailing borrower challenges during the mortgage closing process. The top three "pain points" noted in the report were: not having enough time to review closing documents; an overwhelming stack of paperwork; and documents that were full of terms they could not understand or contained errors. A new rule that will go into effect in August 2015 requiring the use of new, simplified mortgage disclosure forms will address at least one of these concerns: Consumers will receiveĀ a Closing Disclosure form at least three business days before their closing date. "Mortgage closings are often fraught with anxiety," said C...