In efforts to modernize FHA’s processes, HUD announced on January 30, 2014 that they are expanding authority to lenders to accept electronic signatures (e-Signatures) on documents associated with mortgage loans. The new policy allows e-Signatures on origination, servicing, and loss mitigation documents, as well as FHA insurance claims, REO sales contracts and related addenda. Current FHA policy allows for electronic signatures only on third party documents such as sales contracts and other documents not controlled by the lender.
The e-Signatures policy announced today will help streamline the origination process and help reduce document submission time frames for borrowers seeking options to avoid foreclosure. Initially, e-Signatures will not be accepted on the mortgage note itself. FHA plans to begin accepting e-Signatures on forward mortgage notes at the end of the year.
Do electronic signatures and electronic signature software such as DocuSign, DotLoop, Forms Simplicity, or ZipLogic baffle you? We have an afternoon Tech Tuesday session that will briefly cover all options and delve deeper into DocuSign because it is integrated with FlexMLS free forms right now. Tools are right at your fingertips! Jeff van Lingen, President of Quest Connect in Pittsfield, will be at the Board Office from 2:00 – 3:30 p.m. on Tuesday, March 4th for this session – Sign-up today if you’re interest… limited seating!