The Federal Housing Administration (FHA) recently announced it will begin
accepting electronic signatures on third-party documents originated and signed
outside of the lender’s control, including real estate contracts. The FHA plans
to expand the number and types of documents with e-signatures that will be
accepted by the FHA over time.
This policy change is in accordance with Electronic Signatures in Global and
National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act
(UETA), as applicable. It is effective immediately for FHA forward mortgages as
well as Home Equity Conversion Mortgages (HECM) (reverse mortgages).
For a number of years, REALTORS® have urged the FHA to accept e-signatures and
modernize its application process for FHA mortgage insurance. Today’s
announcement demonstrates the influence REALTORS® have when joining together
for a common goal.
“We applaud FHA’s refreshing attitude toward modernization and making
electronic signature capabilities acceptable for its mortgage transactions,”
said NAR President Vicki Cox Golder.
More info:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-14ml.pdf
