[Federal Register Volume 79, Number 2 (Friday, January 3, 2014)]
[Notices]
[Pages 386-387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31436]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket No.: CFPB-2013-0036]


Request for Information Regarding the Mortgage Closing Process

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Notice and request for information.

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SUMMARY: This notice requests information from the public about 
mortgage closing. Specifically, the Consumer Financial Protection 
Bureau (CFPB) seeks information on key consumer ``pain points'' 
associated with mortgage closing and how those pain points might be 
addressed by market innovations and technology.
    The CFPB seeks to encourage the development of a more streamlined, 
efficient, and educational closing process as the mortgage industry 
increases its usage of technology, electronic signatures, and paperless 
processes. The next phase of CFPB's Know Before You Owe initiative aims 
to identify ways to improve the mortgage closing process for consumers. 
This project will encourage interventions that increase consumer 
knowledge, understanding, and confidence at closing.
    This notice seeks information from market participants, consumers, 
and other stakeholders who work closely with consumers. The information 
will inform the CFPB's understanding of what consumers find most 
problematic about the current closing process and inform the CFPB's 
vision for an improved closing experience.

DATES: Submit comments on or before February 7, 2014.

ADDRESSES: You may submit responsive information and other comments, 
identified by Docket No. CFPB-2013-0036, by any of the following 
methods:
     Electronic: http://www.regulations.gov. Follow the 
instructions for submitting comments.
     Mail/Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW., Washington, DC 20552.
    Instructions: The Bureau encourages the early submission of 
comments. All

[[Page 387]]

submissions must include the document title and docket number. Because 
paper mail in the Washington, DC area and at the Bureau is subject to 
delay, commenters are encouraged to submit comments electronically. 
Please note the number associated with any question to which you are 
responding at the top of each response (you are not required to answer 
all questions to receive consideration of your comments). In general, 
all comments received will be posted without change to http://www.regulations.gov. In addition, comments will be available for public 
inspection and copying at 1700 G Street NW., Washington, DC 20552, on 
official business days between the hours of 10 a.m. and 5 p.m. Eastern 
Time. You can make an appointment to inspect the documents by 
telephoning 202-435-7275.
    All submissions, including attachments and other supporting 
materials, will become part of the public record and subject to public 
disclosure. Sensitive personal information, such as account numbers or 
Social Security numbers, should not be included. Submissions will not 
be edited to remove any identifying or contact information.

FOR FURTHER INFORMATION CONTACT: For general inquiries, submission 
process questions or any additional information, please contact Monica 
Jackson, Office of Executive Secretary, at 202-435-7275.

    Authority: 12 U.S.C. 5511(c).

SUPPLEMENTARY INFORMATION: Buying a home is often a consumer's single 
largest financial purchase. According to the latest numbers from the 
National Association of Realtors, the median price of homes purchased 
in the United States is now $207,000. By comparison, the median 
household income is about $51,000, according to the Census Bureau. It 
is crucial that consumers consider the numbers carefully before making 
this potentially long-term commitment, and closing is often their last 
opportunity to do so.
    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 Bureau encourages comments from the public, including:
     Consumers;
     Mortgage lenders and loan servicers;
     Housing finance professionals;
     Brokers and service providers in the residential real 
estate industry;
     Real estate agents;
     Housing attorneys;
     Fair lending, civil rights, and consumer and community 
advocates;
     Providers of financial and housing counseling;
     Settlement closing agents; and
     Other interested parties.
    The Bureau is interested in responses in the following general 
areas, as well as specific questions below. Please feel free to respond 
to any of the questions outlined below.

Consumers and Closing

    1. What are common problems or issues consumers face at closing? 
What parts of the closing process do consumers find confusing or 
overwhelming?
    2. Are there specific parts of the closing process that borrowers 
find particularly helpful?
    3. What do consumers remember about closing as related to the 
overall mortgage/home-buying process? What do consumers remember about 
closing?
    4. How long does the closing process usually take? Do borrowers 
feel that the time at the closing table was an appropriate amount of 
time? Is it too long? Too short? Just right?
    5. How empowered do consumers seem to feel at closing? Did they 
come to closing with questions? Did they review the forms beforehand? 
Did they know that they can request their documents in advance? Did 
they negotiate?
    6. What, if anything, have you found helps consumers understand the 
terms of the loan?

Errors and Changes at Closing

    7. What are some common errors you have seen at closing? How are 
these errors detected, if at all? Tell us about errors that were 
detected after closing.
    8. What changes, diverging from what was originally presented at 
closing, often surprise consumers at closing? How do consumers react to 
changes at closing?

Other Parties at Closing

    9. How, if at all, do consumers typically seek advice during 
closing? In person? By phone? Online?
    10. Where and to whom do consumers turn for advice during closing? 
Whom do they typically trust?

Closing Documents

    11. What documents do borrowers usually remember seeing? What 
documents they remember signing?
    12. What documents do consumers find particularly confusing?
    13. What resources do borrowers use to define unfamiliar terms of 
the loan?

Improving Closing

    14. What, if anything, would you change about the closing process 
to make it a better experience for consumers?
    15. What questions should consumers ask at closing? What are the 
most important pieces of information/documents for them to review?
    16. What is the single most important question a consumer should 
ask at closing?
    17. What is the single most important thing a consumer should do 
before coming to the closing table?

    Dated: December 13, 2013.
Christopher D'Angelo,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2013-31436 Filed 1-2-14; 8:45 a.m.]
BILLING CODE 4810-AM-P