HUD ML 2014-03 Electronic Signatures
On January 30, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2014-03, regarding the acceptance of electronic signatures.
Mortgagee Letter 2014-03
To: All FHA-Approved Mortgagees
Subject: Electronic Signatures
Purpose: This Mortgagee Letter (ML) announces that FHA will accept electronic
signatures conducted in accordance with the performance standards outlined in
this ML on documents requiring signatures included in the case binder for
mortgage insurance, servicing and loss mitigation documentation, FHA insurance
claim documentation, and on HUD’s Real Estate Owned (REO) Sales Contract
and related addenda unless otherwise prohibited by law.
This policy applies to FHA Single Family Title I and II forward mortgages and
Home Equity Conversion Mortgages.
Effective Date: The policies set forth in this Mortgagee Letter are effective immediately.
Legal Authority: The Electronic Signatures in Global and National Commerce (ESIGN)
Act Pub. L. 106-229, § 1 (June 30, 2000), 114 Stat. 464, codified at 15 U.S.C.
§§ 7001-7006. The ESIGN Act encourages agency acceptance of electronic
signatures. The ESIGN Act also grants agencies with interpretive authority the
ability to specify performance standards to assure accuracy, record integrity,
and accessibility of records that are required to be retained.1
Affected Topics: ML 95-50; ML 01-01; ML 10-14; HUD Handbook 4155.1 1.B.1.k,
Policy on Use of Electronic Signatures on Third Party Documents. Electronic
signatures meeting the requirements of this ML will now be treated as equivalent
to handwritten signatures. Nothing in the Mortgagee Letter affects existing FHA
requirements as to who is authorized to sign any specific document.
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