Understandable Property Settlement Agents

We are privately held and do not release numbers," said Joe Hausauer, president, Keystroke. "Our site traffic is consistently growing. We are closing more loans this month than the prior and are on track to do the same next month. Keep in mind that rates have edged up lately and this is a seasonally slow time of year for the industry.

Hausauer says regulatory issues are one barrier to online mortgage banking. For example, some states such as California require lenders to have a physical presence or an office in that state as a condition of licensing. Property valuations reports are very important in property buying or selling process.

It has been demonstrated by the Web and telemarketing efforts that you do not need bricks and mortar to do loans, nor does an office offer any particular consumer protection," said Hausauer. This requirement is being viewed by the industry as a restraint of trade and we expect to see legal challenges along those lines down the road.



Another issue is security. The online banking industry has had conversations with regulators on how Web security should be developed to protect the confidentiality of consumer information and to verify the authenticity of the company with who the consumer is doing business.

"The type of borrower we are attracting, is looking to create as much of a transaction as possible, without needing to speak to a body," said Hausauer.

As more and more consumers enter the online world and feel increasingly secure releasing their personal financial information online, more and more lenders are expected to offer online transactions. As more and more consumers enter the online world and feel increasingly secure releasing their personal financial information online, more and more lenders are expected to offer online transactions.

Freddie Mac has added six more states to the experimental energy-efficient mortgage program it began in April 1995. Colorado in April 1995 and expanded last year to include Louisiana.