E-Signatures simplify and expedite transactions, making it easier, faster, and cheaper for buyers, sellers and borrowers to conduct business. What used to take days and weeks can now be accomplished in as little as 15 minutes. The The E-Sign Act was passed in 2000, so why has it taken so long for our industry to see the benefits for buyers, sellers, and borrowers?
Advantages of E-Closings
In 2014, the CFPB began a study that aligned with the Know Before You Owe initiative to monitor the advantages and benefits of electronic closings and how the early review would impact the consumer’s overall closing process experience. The results are in, and in general they found that e-closings provided better consumer understanding, a more efficient process, and an overall greater feeling of empowerment, than closings with traditional paper documents.
“While technology alone will not address all consumer concerns in the closing process, our study showed that eClosings do offer the potential to make the process less complex,” said CFPB Director Richard Cordray. “We expect this pilot project and its findings to help inform further innovation that will be a win-win for consumers and industry alike.”
Check here for the full CFPB study results.