FHA has recently announced its new policy to grant lenders to begin accepting documents with e-signature on mortgage loans. The new policy is already effective.
Before, electronic signatures were only accepted on other documents such as sales contracts; now with the new policy, it is easier for lenders to work with the FHA. This allows for greater efficiency in the home buying and loss mitigation process, as well as insurance claims, sales contracts and other related addenda. Quality control processes, security and technical standard should also be met for lenders to use electronic signatures.
It is proven that e-signatures help shorten the average signing time and has been widely used by many real estate offices. Companies like Dotloop and DocuSign are used by real estate agents to complete real estate transactions.
Dotloop, which is used by our office, has given us complete visibility into every aspect of our business and has allowed us to be more efficient in our operation. It is a good thing that FHA has also adopted the technology common real estate agents practice nowadays.