The Consumer Financial Protection Bureau has been gathering feedback from industry professionals and consumers on problems encountered during the home closing process. So far, more than 140 people have submitted comments online.
The biggest gripe so far this year centers on how little time borrowers usually have to review documents prior to closing.
“It is not the specific form, but the ingredients of the entirety of forms, the clock ticking, and the seriousness of the commitment of buying a home that applies so much stress the consumer does not know what to do but just ‘initial and sign here,’ ” wrote Mark McElroy, chief executive of RamQuest, a title production software company. “Let’s provide ample time during the closing process for consumers to be educated and review the necessary forms.”
Other complaints about the closing process that the CFPB has gathered so far involve excessive and redundant paperwork and confusion over the HUD-1 settlement statement and what it means, as well as lenders who don’t have documents ready in time, The New York Times reported.
The findings are similar to those found in J.D. Power’s annual survey on consumer satisfaction with mortgage lenders. The survey showed that consumers’ top complaints are not having enough time to review closing documents carefully and being unsure of how much money to bring to the closing table.