The Trump administration on Tuesday called for a series of changes to the country's financial and mortgage ecosystems that, if enacted, would supercharge the financial industry's technological revolution, upend the current regulatory environment, and potentially change the face of mortgage lending.
The proposed changes come in the form of a broad-ranging report released Tuesday by the Department of the Treasury, which looks at nonbank financial institutions, fintech, and fostering innovation.
In the report, the Trump administration calls for the establishment of "regulatory sandboxes," wherein regulators would work directly with the companies they regulate to help firms innovate new products and services without fear of a regulatory smackdown.
But that's not all. Far from it, in fact.
The report also calls for a series of changes to the mortgage lending and servicing industries, including increased adoption of fully digital mortgages, a further push into automated property appraisals, widespread acceptance of electronic notarization, plus changes to the way the government uses the False Claims Act to police Federal Housing Administration lending, new industry-wide standards for mortgage servicing and loss mitigation, and much more.
The report is lengthy and goes into much detail about each of those areas highlighted above (click here for the full report), but here's a brief look at some of the changes the Treasury is recommending. It should be noted that some of these changes could only come via congressional or states' actions.
The report contains a sizable section on the adoption of fully digital mortgages, including "acceptance of digital promissory notes, recognition of modern digital notary standards, and automated property appraisals
." Trump Administration Calls for Sweeping Changes to Financial Ecosystem