3rd-party e-signatures now OK for FHA insurance application

April 13th, 2010

Written by Frost Mortgage

The department of Housing and Urban Development (HUD) will now allow electronic signatures on third-party documents as part of the Federal Housing Administration (FHA) mortgage insurance application.

In a mortgagee letter released last week, HUD said the policy is effective immediately for forward mortgages and Home Equity Conversion Mortgages. The letter continued:

Third party documents are those that are originated and signed outside of the mortgagee’s control, such as a sales contract. An indication of the electronic signature and date should be clearly visible when viewed electronically and in a paper copy of the electronically signed document. Mortgagees must employ the same level of care and due diligence with electronically signed documents that they would for paper documents with “wet” or ink signatures. Additionally, mortgagees are reminded that the origination case binder must be maintained in either hard copy or electronic format for two years from the date of endorsement [HUD Handbook 4000.2 REV-3].

These changes should make the process simpler and quicker for all involved. If you’re in the market for a mortgage, please consider Frost. Since 1991, from California to Florida, we’ve been doing more than just closing mortgages–we’ve been opening doors.

Please take a moment to learn more about how Frost Mortgage can help you. If you're looking for a mortgage, please visit our Find a Loan Officer page. And if you're looking for the best Branch Partner opportunity in the business, please visit our Branch Opportunities page. Thank you!

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This entry was posted on Tuesday, April 13th, 2010 at 10:42 am and is filed under Economy, FHA, Federal Housing Administration, HUD, Homebuying, Housing and Urban Development, Mortgage Approval Process, Mortgage Banker News, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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