FHA Commissioner Dave Stevens recently announced that the Federal Housing Administration (FHA) intends to expand its acceptance of electronic signatures on certain documents.
In April, FHA began accepting electronic signatures on third party documents like sales contracts. With this announcement, FHA will begin to accept e-signatures on lender originated documents (e.g. the Uniform Residential Loan Application) and loan disclosures that are signed by borrowers. FHA also stated that they may, in the future, begin to accept electronic signatures on lender originated documents to be signed by lenders’ representatives (underwriter certifications.)
A memo detailing the announcement and FAQs can be found here.
What do you think? Does this help modernize the real estate transaction process? What hurdles still remain?