Beginning today, lenders who have a process in place that aligns with the Electronic Signatures in Global and National Commerce Act can accept e-signatures for both reverse and forward single-family mortgages, the Federal Housing Administration said.
The FHA also has approved e-signatures for other mortgage-related docs, including “origination, servicing and loss mitigation documents, as well as FHA insurance claims, REO sales contracts and related addenda.” E-signatures are still not accepted on the mortgage note itself, the FHA noted, but will be at the end of 2014.
The move to e-signatures will streamline the loan origination process and shorten the document-processing timeline for borrowers facing foreclosure, the FHA said.
Previous FHA policy allowed for e-signatures only on third-party documents such as sales contracts and other documents not controlled by the lender.
Source: HUD.gov
