As part of its modernization effort, the Federal Housing Administration is accepting more electronic signatures on mortgage-related documents.
The policy launched Thursday allows e-Signatures on origination, servicing and loss mitigation documents. FHA insurance claims, REO sales and other contracts can also be administered by e-Signature.
Under current policy, lenders dealing with FHA are used to electronic signatures being limited to only third-party documents, including sales contracts not controlled by the lender.
"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."
This new policy begins immediately for lenders who want to use e-signatures on single-family forward mortgages and FHA reverse mortgage products.
Lenders still have to follow the Electronic Signatures in Global and National Commerce Act.
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