Last week, the U.S. Department of Treasury issued the latest in a series of reports aimed at improving regulation of the U.S. financial system. The report focuses on recommendations for nonbank financials, fintech, and innovation. NAR provided feedback on this initiative to Treasury earlier this year, highlighting a number of topics of importance to REALTORS®.

In the end, NAR applauds the Department of Treasury’s report, which we believe was aimed at facilitating a regulatory environment that fosters innovation, improves technological growth, and encourages competition in the industry.

Additionally, strengthening the oversight of the credit bureaus to protect consumer data and allowing for increased flexibility for adoption of new credit models is key to encouraging and increasing homeownership opportunities.

Treasury’s recommendation to adopt electronic closing processes, such as electronic and remote online notarization, will be useful in promoting more efficient real estate transactions.

Technological innovation in real estate valuation remains beneficial for consumers, leading to a more functional real estate market. However, NAR believes that added transparency and stability in transactions utilizing an automated valuation or hybrid appraisal should occur prior to decisions to enact drastic changes in current law, which would allow government and other loan programs to use these methods.

NAR appreciates the ability to provide feedback to Treasury on these critical recommendations to streamline and safeguard the U.S. financial system in an effort to empower consumers in the real estate market.

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