The development of more sophisticated computer software programs is moving the paperless era closer to reality. This includes documents related to home sales and the transmission of those documents to participating parties, including the legal use of e-signatures.

Recognizing the growing demand for this technology, the National Association of Realtors recently partnered with DocuSign, a provider of on-demand electronic signature capabilities. The firm provides software needed for complete electronic processing of documents, including the signing, tracking and storing of home sale documents, according to NAR.

Most home buyers and sellers, along with brokers, are delighted with this development. It's much more convenient and timesaving as opposed to the traditional paper-loaded processing of documents.

"NAR believes that the affiliation with DocuSign will meet the demand for legally binding electronic signatures. This will help Realtors close more deals at a faster rate and offer the convenience and flexibility buyers require," a NAR spokesman said.

The evolution of electronic signatures on documents started when Congress enacted the Electronic Signature in Global and National Commerce Act (the ESIGN Act) in year 2000. Its primary objective was to facilitate the use of electronic records and signatures in interstate and foreign commerce by ensuring the validity and legality of e-contracts.

One special benefit of using e-documents in home sale transactions is tied to the need for delivering all signed documents to the involved parties in a timely manner, as stated in most state real estate practice statutes. It also deters people or companies from fraudulently changing the terms of contracts in cases where consumers electronically sign an agreement and consent to receive electronic disclosures.

Before using e-documents and e-signatures, it would be a good idea to check your state's statutes regarding this area. Their requirements vary from state to state. Or discuss it with your attorney.

Q: What recent changes have been made in FHA mortgages?

A: The Federal Housing Administration continues to make changes in its mortgage programs to help provide needed financing for increasing numbers of home buyers, as well as owners who want to refinance their existing mortgage. That was the message communicated by FHA Housing Commissioner Dave Stevens at a recent Realtor convention.

"We must never let overexuberance overtake the housing market again, and interrupt the market and the lives of untold millions of Americans," he told the Realtors. "Our goal must be nothing less than to craft a solid and sustainable housing market — a market with a secure foundation for the future."

Pointing to an example of recently implemented changes in FHA programs, Stevens said the FHA now no longer requires a second appraisal on high-balance loans for properties in declining markets.

"We did not find our previous policy to be particularly helpful and were very concerned about the additional burden on lenders and consumers. The new policy change brings industry alignment, streamline loan processing and reduced costs to consumers," he said.

FHA has also taken actions related to condominium mortgages. "We enacted some temporary measures to meet challenges in the condo market," Stevens noted. "We have excluded vacant and bank-owned real estate units from the calculation of owner-occupancy ratios in condo projects, and reduced the presale requirement from 50 percent to 30 percent among others. These standards will take effect Dec. 7, and spot loan approvals will extend until Feb. 1 to provide time for transition," he said.

Stevens also cited policy changes in FHA management of risk, including the requirement of FHA-approved lenders to hold more capital to ensure responsible lending and risk management. He also noted that FHA recently hired, for the first time in FHA's history, a chief risk officer.

FHA's share of the mortgage market rose from 3 percent three years ago to more than 25 percent today, Stevens noted. About 80 percent of recent FHA mortgages have financed homes for first-time buyers.

Q: Is the proportion of home renters increasing?

A: At this point, renters are on the increase. About one in three households rent rather than own their home.

Many current renters are those who lost their home through foreclosure or sold their home when they found that they could not afford their monthly mortgage payments. Many baby boomers rent as a lifestyle to downsize or heighten their mobility. Others just don't have the cash needed for a down payment and closing costs required for a home purchase, so they temporarily rent their residence.

In most cases, families rent with the plan to acquire their own home as soon as they are financially able to do so.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.