Bulletin: NL000128

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.