If we learned anything at December’s Digital Mortgage Conference in San Francisco, it was that the industry is ready for the electronic mortgage.
That should come as no surprise to anyone who has been in the industry for very long. A mortgage originated, sold into the secondary market, and then serviced in a completely electronic fashion, has been the dream of many mortgage industry technologists for almost two decades. That’s how long ago the federal government passed the Electronic Signatures in Global and National Commerce Law, also known as the E-Sign Act.
It All Started with E-Sign
When E-Sign was signed into law, a few forward-thinking mortgage professionals got a glimpse of our future. They saw a world in which our painful paper-based processes were abandoned in favor of all-electronic mortgage loan origination. It has remained a dream for most industry participants for the last 17 years.
E-Sign was passed on June 30, 2000, by the U.S. Congress to facilitate the use of electronic records and electronic signatures in interstate and foreign commerce. It created a national framework for conducting business electronically and formalized the acceptance of electronic signatures. Of course, we live in a country where a great many powers are reserved for the state. Ultimately, it’s state law that has determined when and how quickly the industry has been able to move toward the eMortgage.
Because our government leaders knew the federal government was not intended to direct the states but that, without consensus among these various governments, many problems—including a negative impact on interstate commerce—would result, the National Conference of Commissioners on Uniform State Laws (NCCUSL) has been working for the uniformity of state laws since 1892.