WASHINGTON, D.C. – The Dodd-Frank Act empowered the Consumer Financial Protection Bureau (the “CFPB”) to issue regulations designed to protect and educate consumers regarding financial transactions. While commercial closings are outside the scope of the CFPB, the closing process of retail loans is included in the CFPB’s broad regulatory authority.
The CFPB recently published a report detailing its findings concerning an electronic closing (“e-closing”) pilot. This study was initiated to determine the feasibility of e-closings and to identify the net positive/negative impacts of adopting this technology.
While the majority of the findings were inconclusive, the report stated the CFPB is “encouraged by the results” and continues to analyze whether e-closings promote consumer empowerment. Admittedly, this statement does not shed much light on whether we will see a promulgation of regulations concerning e-closings in the future. It does, however, suggest CFPB is open to e-closings and will be initiating more studies to further determine the impacts.
See the CFPB’s report here: 2015 E-Closing CFPB