Bulletin: NL000128

Date:
August 21, 2002
To:
All Issuing Offices
RE:
Fannie Mae and Electronic Production of Policies
Dear Associates:

Fannie Mae recently issued its Announcement 02-01, dated January 25, 2002 (Announcement). This Announcement concerns "Electronic Transactions for Fannie Mae Mortgages."

This Announcement recognizes that Fannie Mae will not require documentation, such as insurance policies, associated with originating and servicing a mortgage to be obtained in paper form.

Fannie Mae requires that the documentation accurately reflect the information set forth in the record after it was first generated in final form, and that it remain accessible for later reference by all persons who are entitled to access it.

By separate letter to Stewart Title Guaranty Company, Fannie Mae confirmed that lenders may accept title insurance policies (including Short Form Loan Policies), that the title insurer or its authorized agent has produced in compliance with the Announcement and delivered by electronic means, or has produced by using a laser printer. The title policy produced by the title insurer or its authorized agent, must not be subject to unauthorized alteration.

The Federal Electronic Signatures in Global and National Commerce Act and the Uniform Electronic Transactions Act (enacted in 40 jurisdictions) also generally authorize electronic transactions, including electronically generated title policies.

Company Policy on Laser Printing of Policies: Please contact your District Manager and Audit Services (1-800-729-1900) if you wish to laser print policy jackets. If you laser print schedules only (and not policy jackets), you do not need further approval. If you use AIM for Windows or VAX AIM for policy production, you also do not need further approval.

Company Policy on Electronic Production and Delivery of Policies (Without Hard Copies): Please contact your District Manager and Audit Services if you wish to produce and deliver electronically your title policies. Also contact your underwriting personnel in your state if you wish to electronically deliver Owner's Policies to residential purchasers.

Electronically produced forms do not have to have a printed official corporate seal or president's signature. You still must countersign them for them to become effective. Electronically delivered forms do not require a "hard" countersignature.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
NL000128 Fannie Mae and Electronic Production of Policies
 
TX000063 Texas Supplement to National Legal Bulletin NL000128 Electronic Production of Short Form Mortgagee Policies
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None