Just last week, one of the companies that had been competing in the residential market, DTE Edison America, decided to fold up its offices here, citing the so-called wet signature requirement and saying the marketplace just isn't profitable enough.

Insurers are working with the National Association of Insurance Commissioners to modernize and standardize troublesome state regulations. Many states, for example, have rules that require a "wet" signature on a policy or physical delivery of the policy, thus preventing policy issuance via by the Internet.

Freddie believes that change will speed the loan delivery process, but the elimination of seller signature requirements will also trim time from the loan swap process. Freddie sellers are required to complete the agencys Global Trading Partners Agreementan agreement that binds lenders to the terms and conditions of recorded telephone conversations and electronic or fax transmissions in lieu of a wet signature on a paper document.