Scotsman Guide recently published an article online, “Clearing the Way for Electronic Signatures” by Jeff Knott, assistant vice president, Equifax Verification Services, giving an overview of the FHA’s announcement about its expanded acceptance of electronic signatures and what it means for the mortgage industry.
As those in the mortgage industry know, before the Department of Housing and Urban Development (HUD)’s publication of Mortgagee Letter 2014-03, the FHA only permitted electronic signatures on third party documents that were not generated by the originator. As a result of the FHA’s updated policy, the acceptance of e-signed records now includes lender-created docs.
According to Knott, who is also vice chairman, Electronic Signature and Records Association (ESRA), “The new policy introduces a lot of positivity to the mortgage industry. The endeavor by the FHA to increase its understanding of electronic processes demonstrates a forward-thinking mindset and dedication to rebuilding the industry.” Knott’s opinion is that this development could even serve as the foundation for an entirely electronic mortgage process.
Mortgage originators can recognize a plethora of benefits from this updated policy – from reduced costs and streamlined internal operations to the ability to merge separate practices into a single platform. Check out Scotsman Guide’s “Clearing the Way for Electronic Signatures” article to get a better understanding of the FHA’s announcement and how it positively impacts the mortgage industry.
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