[Congressional Record (Bound Edition), Volume 145 (1999), Part 13]
[Extensions of Remarks]
[Page 18134]
[From the U.S. Government Publishing Office, www.gpo.gov]



              ELECTRONIC DISCLOSURES DELIVERY ACT OF 1999

                                 ______
                                 

                            HON. RICK LAZIO

                              of new york

                    in the house of representatives

                         Tuesday, July 27, 1999

  Mr. LAZIO. Mr. Speaker, Today, I join Congresswoman Roukema and 
Congressman Inslee in introducing, The Electronic Disclosures Delivery 
Act of 1999. The legislation addresses the rapidly increasing role of 
computers and telecommunications technology in the delivery of 
financial products and services of all kinds. Providing financial 
services such as mortgages, insurance and securities over the Internet 
is redefining the banking and investment industries and promises to be 
an area of explosive growth over the next five years.
  The legislation only addresses electronic delivery of information to 
and from consumers and financial services providers. It does not affect 
the rights and responsibilities of any party or the content of any 
disclosure, including both the timing and format of disclosures and the 
information to be provided. The bill makes it possible for these 
disclosures to be given to the consumer efficiently and in a more user 
friendly format than is currently the practice. Over the Internet, 
consumers will be able to conduct transactions virtually anywhere and 
at any time, 7-days-a-week, 24-hours-a-day. Internet commerce will 
increase consumer convenience, through reduced costs and more ``one-
stop shopping.''
  Many of the federal laws that regulate mortgage transactions, 
including the Real Estate Settlement Procedures Act (RESPA), mandate 
the delivery of disclosures to consumers. However, in most cases, these 
laws were adopted to apply to face-to-face or paper transactions, and 
do not easily accommodate on-line transactions. RESPA is a statute that 
has not been free from controversy--many would argue that substantive 
provisions of that law are in need of clarification. However, the 
legislation that we are introducing today focuses only on the 
electronic delivery of disclosures. I believe that the on-line delivery 
of disclosures deserves review apart from the overall RESPA reform.
  Let me give you a sense of the impact of the Internet on the 
financial services industry:
  International Data Corporation forecasts that total worldwide 
commerce on the Internet will grow from an estimated $32.4 billion in 
1997 to an estimated $425.7 billlion in 2002.
  According to Jupiter Communications, the number of on-line banking 
households in the United States is projected to grow from an estimated 
4.5 million in 1997 to an estimated 17.1 million in 2002. Jupiter 
Communications further indicates that the percentage of these on-line 
banking households utilizing Internet banking is projected to rise from 
an estimated 8 percent in 1996 to an estimated 80 percent in 2000.
  A recent Forrester Research, Inc. report indicates that by the year 
2003, nearly $100 billlion or 10 percent of the mortgage market will be 
generated online, while other reports project the market share for 
Internet originations to be as high as 30 percent by the year 2005.
  The Forrester study also indicated that in the view of the financial 
services industry one of the principal impediments to progress in the 
offering of mortgages over the Internet is outdated laws and 
regulations.
  The Congress and the regulators must play a leadership role in 
updating many of the consumer protection laws to reflect new 
technologies and establish a coherent legislative framework to deliver 
financial services and products through electronic commerce. As 
chairman of the Housing Subcommittee I look forward to working with 
Congresswoman Roukema and Congressman Inslee to promote these 
legislative changes that will enhance consumer access to financial
products while maintaining appropriate consumer protections.

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