January 31, 2014

FHA to accept more e-signatures on loan docs

The Federal Housing Administration announced on Thursday it would give lenders authority to accept more mortgage documents with electronic signatures, or e-signatures, which had previously only been allowed on third-party documents.

FHA Commissioner Carol Galante said, "By extending our acceptance of electronic signatures on the majority of single family documents, we are bringing our requirements into alignment with common industry practices. This extension will not only make it easier for lenders to work with FHA, it also allows for greater efficiency in the home-buying and loss mitigation process."

The mortgage documents now permitted to have e-signatures include documents on origination, servicing, loss mitigation, FHA insurance claims, REO sales contracts and related addenda.

The policy is effective immediately for single-family forward mortgages, FHA reverse mortgage products and home equity conversion mortgages, or reverse mortgages. The agency said it plans to begin accepting e-signatures on forward mortgage notes at the end of 2014.