The U.S. Consumer Financial Protection Bureau (CFPB) is asking for help identifying the most stressful and confusing areas for consumers when it comes to the closing process in a home purchase. The agency is hoping to identify the main consumer “pain points” at closings as part of its “Know Before You Owe” initiative, which is aimed at improving the mortgage process through market innovations and new technologies such as electronic signatures and paperless processes.
“Buying a home is often a consumer’s single largest financial purchase,” said the CFPB in a statement on its website.
“However, closing can be stressful and confusing for consumers. The CFPB plans to conduct several initiatives in order to test and study various ways in which the closing process might be improved. This information will help inform those initiatives.”
The CFPB is collecting comments not just from homebuyers but also real estate professionals, settlement agents, mortgage lenders, and others with a stake in the closing process.
The public is encouraged to comment on the common problems consumers face at closing, where to turn for advice during closing, and what documents and terms are the most confusing during the process.
The agency is also looking for answers to 17 specific questions about closings and consumer preparation, common errors, and the role of other parties in the process.
Responses must be submitted by Feb. 7.
The CFPB is an independent federal agency responsible for regulating consumer protection with regard to financial products and services. The agency was created in 2011 as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act.
And if you’re planning to enter the Bay Area homebuying market this year and need to secure a loan, Pacific Union’s mortgage partner Mortgage Service Professionals can offer the advice and consultation to make your purchase a success.
(Image: Flickr/Heather Blacklock)