Freddie Mac Publishes Second Draft Of Electronic Mortgage Guidelines;
March 6, 2001
Industry Invited To Review, Send Comments on Latest Draft by April 6
McLean, VA ? A second draft of preliminary specifications for electronic single-family mortgages was posted on the company's website today for additional review and comment by the mortgage industry. The new draft is based on comments on a first draft published in November 2000 that were submitted by mortgage industry participants, trade associations, and digital signature companies.
The mortgage industry is invited to review the updated specifications, which are now available through Freddie Mac's Single-Family website. Comments should be sent by April 6, 2001. Freddie Mac plans to use the comments to refine and publish additional drafts for review and comment.
Once finalized, the Freddie Mac guidelines are expected to pave the way for flexible data standards and effective processing capabilities that will enable the entire lending industry to fully realize the potential of e-commerce. Electronic mortgages have the potential to simplify and streamline the mortgage process by reducing administrative costs and processing time, as well as improving quality control, drastically reducing paperwork, and minimizing manual steps.
Release of the second draft of the guidelines comes four days after the electronic document storage provisions of the federal Electronic Signatures in Global and National Commerce Act (E-SIGN) became effective March 1, 2001. These provisions will prompt federal and state regulatory agencies to set standards for electronic document storage.
E-SIGN requires lenders to protect consumers by providing specific disclosures, obtaining the consumer's consent to use electronic documents, and establishing reliable methods for obtaining the consumer's electronic signature.
Comments can be sent by e-mail to firstname.lastname@example.org or mailed to the following address.
Attn: Electronic Mortgage Task Force,
8200 Jones Branch Drive,
McLean, VA 22102.
Freddie Mac purchased the first electronic mortgage sold under the federal Electronic Signatures in Global and National Commerce Act (E-SIGN) on October 2, 2000 in a transaction involving CUNA Mutual Mortgage Corporation and Mountain America Credit Union in Salt Lake City, Utah.
Source: Freddie Mac