Does FHA accept electronic signatures on documents?

An electronic signature conducted in accordance with the Electronic Signature Performance Standards (Performance Standards) is accepted on FHA documents requiring signatures to be included in the case binder for mortgage insurance, unless otherwise prohibited by law.  The Performance Standards are the set of guidelines that govern FHA acceptance of an electronic signature.

The use of electronic signatures is voluntary. However, Mortgagees choosing to use electronic signatures must fully comply with the Performance Standards.  A Mortgageeā€™s electronic signature technology must comply with all requirements of the E-SIGN Act, including those relating to disclosures, consent, signature, presentation, delivery, retention and any state law applicable to the transaction.  FHA will accept electronic signatures on third party documents (originated and signed outside of the control of the Mortgagee) included in the case binder for mortgage insurance endorsement in accordance with the E-SIGN Act and the Uniform Electronic Transactions Act (UETA).  An indication of the electronic signature and date should be clearly visible when viewed electronically and in a paper copy of the electronically signed document. 

Mortgage Insurance Endorsement Documents: 
Electronic signatures will be accepted on all documents requiring signatures included in the case binder for mortgage insurance. FHA will accept electronic signatures on the Note for forward mortgages only. FHA will not accept electronic signatures on Home Equity Conversion Mortgage (HECM) Notes.
 
Servicing and Loss Mitigation Documentation: 
Electronic signatures will be accepted on any documents associated with servicing or loss mitigation services for FHA-insured mortgages.
  
FHA Insurance Claim Documentation: 
Electronic signatures will be accepted on any documents associated with the filing of a claim for FHA insurance benefits, including form HUD-27011, Single Family Application for Insurance Benefits.  

HUD Real Estate Owned (REO) Documents: 
Electronic signatures will be accepted on the HUD REO Sales Contract and related addenda.  

For additional information see Handbook 4000.1 II.A.1.a.i.(A)(4) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-04809