Remembering the consumer in mortgage disclosure preparations
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Regulatory Updates
Tuesday, May 27, 2014
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In preparing for the new mortgage disclosures, it’s important to remember that these changes are being done to empower the consumer to make the best financial decisions.
“The goal [of the new forms] is to increase consumer understanding,” said Leslie Wyatt, director of industry relations at SoftPro. “They didn’t think consumers had a very good idea of what they were getting into, especially first-time homebuyers. They don’t understand the terms, they don’t understand how a mortgage works, how payments can change. [The CFPB] really tried to make the consumer aware of what is going on. They want to know that when a consumer sits down to sign for a loan, they understand all sides of that loan.”
“It important to understand that this new regulator’s (CFPB) primary obligation and mission is consumer protection,” said Mary Schuster, chief product officer at RamQuest. “It’s a very different reality with them today than with regulators of the past. It’s the right thing and our industry is supportive of it, we simply have to be aware that the focus isn’t going to be on ease or facilitation of industry operational concerns. Transparency and accountability to consumers are the singular lense through which all topics are viewed.”
She said that embedded in the new rule is an opportunity to make consumers educationally aware and invested in who their title and settlement service provider is.
“I do not think that an average consumer will ever get passionate about the benefits of title insurance and waive an American flag in a commercial about title insurance, but I do think they can care about who their title and settlement provider is. I do think they care about quality and transparency in the closing process. I think that is a place we can move the needle of the perception of our business,” Schuster said.
One way to spread the message is social media.
“You have someone in your office who is well versed in working with social media” Schuster said. “It may not be your chief title officer or star closer, but search and I think you’ll find you have at least one person in your office who knows how to use its power for good. It is an easy and inexpensive way to get messaging out, even if you start with your Realtors and lenders who you already have a relationship with. They are linked to consumers. People are out there, and it’s free.”
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