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?
Jim Duncan
June 7, 2010 at 7:59 pm
Now, if we can just get the processors, the underwriters, the lenders … to accept them. They are the hold up. I’ve sent the FHA memorandum to lenders who send them to the underwriters who return the answer, “No.”
Progress is a difficult thing.
Melanie Wyne
June 8, 2010 at 11:05 am
Jim,
“Progress is a difficult thing.” Amen.
Joe
June 8, 2010 at 9:32 pm
One step closer to paperless, eh! That’s what we like about DocuSign. We are eliminating paper, now if we can make money without having to deal with clients… [grins]
An Bui, DocuSign Social Media
June 8, 2010 at 11:49 pm
Melanie, Thanks for helping spread the word about FHA’s policy on eSignatures.
Jim, we’re working with the lenders & other third parties about eSignature acceptance. Please let us know if you want us to talk with your lenders.
Best,
An
Nick Sweeney, DotLoop Social Media
June 9, 2010 at 8:25 am
This, of course, is great news.
I find it odd, however, that the FHA is a full decade behind the times. The ESIGN and UETA Acts of 2000 made electronic signatures as legally valid as “wet” signatures – this is how you are able to buy items off of eBay or Amazon without having to put a Bic pen to your screen.
By the way, any lender not “accepting” electronic signatures is in violation of the law.
Thanks for reminding us of the new FHA acceptance.
Doug Francis
June 9, 2010 at 3:20 pm
Hey, isn’t that a DocuSign ad on the right sidebar?
Kidding aside, I am glad that the FHA is issuing guidance since this is a good service.
Fred Romano
June 11, 2010 at 1:12 pm
DocuSign is amazing! I could not run my business as smoothly without it 🙂