In its ongoing bid to modernize its processes, the Federal Housing Administration [1] (FHA) has granted expanded authority to lenders to accept e-Signatures on loan documents.
The new policy allows e-Signatures on origination, servicing, and loss mitigation documents. Also included are those related to FHA insurance claims and REO sales contracts.
“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,” said FHA Commissioner Carol Galante. “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 expanded authority goes into effect immediately for single-family forward mortgages and the agency’s reverse mortgage products.
While FHA does not currently accept e-Signatures on mortgage notes themselves, the agency says it plans to begin taking them at the end of the year.