“Where we have seen e-signatures have been more on the front end of the process,” Tyszka explained. “Consumers are able to more easily sign and initial application documents electronically because that has been where most of the efficiency and cost savings has come from. But the CFPB is really very interested in the consumer experience and consumer understanding in the e-closing process, and I really believe that is where financial institutions should prepare to innovate.”

Tyszka did not predict exactly what form the innovation might take, but said that he had already heard of firms experimenting with online video technology to help consumers understand their recusal rights, for example.

“Maybe the e-closing process won't let you e-sign a document until you watch this 30-second video clip,” he said. “Or maybe if the borrower hovers the mouse over a certain clause or element of a document, a little video pops up to explain that.”

Tyszka pointed out the technology that permits these types of interactions already exists, and that consumers who are already familiar with the concept of online learning are probably wondering why lenders have not already deployed it.

He also mentioned that lenders should be prepared to innovate when it comes to data collection and reporting. The CFPB has shown a strong interest in collecting more data from financial institutions during the mortgage loan origination process, he said, therefore financial institution lenders should start preparing to innovate in the areas of data collection, storage, reporting and safeguarding.