May Mortgagees use an electronic storage system for retention of servicing-related documents?

Where retention of a hard copy or original document is not required, Mortgagees may use electronic storage methods for all servicing-related documents required in accordance with HUD regulations, handbooks, Mortgagee Letters, and notices.

Regardless, the Mortgagee must be able to make available to HUD in the format (electronic or hard copy) requested, legible documents within 24 hours of a request or as otherwise prescribed by HUD.
Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

See policy in Handbook 4000.1, Section III.A.1.n.iv at:

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-05255