The Federal Housing Administration (FHA) in Mortgagee Letter 2010-14 has announced the acceptance of electronic signatures on third party documents included in the case binder for mortgage insurance endorsement as long as they are in accordance with Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA), as applicable. This policy will apply to forward mortgages and Home Equity Conversion Mortgages (HECMs).
Mortgagees must ensure that the electronic signature and date are clearly visible when viewed electronically and in a paper copy; and that they use the same level of care and due diligence with electronically signed documents that they would for paper documents with “wet” or ink signatures. This letter also contains a reminder to mortgagees that the origination case binder must be maintained in either hard copy or electronic format for two years from the date of endorsement.
Click here to view the full text of FHA Mortgagee Letter 2010-14.