On April 8, 2010, FHA sent out a mortgagee letter stating that the FHA approves electronic signatures on documents, including contracts.
This is wonderful news, as I have recently begun to use Docusign electronic signatures for the convenience of my clients.
I also wanted to use this to prevent the use of paper as much as possible, since contracts can be anywhere from 35-50 pages, and often times many copies are made, wasting so much.
Here is a copy of the mortgagee letter from the US Department of Housing and Urban Development.
In speaking with T Jeremy Loomis, my mortgage partner, he stated that Wells Fargo’s policy is that the settlement papers must be done “wet” — actually signed in person with ink.
This is very exciting that FHA is trying to help make the contract process easier and more environmentally friendly.
Since implementing electronic signatures through Docusign for my Towson real estate clients, it has made things so much more efficient and “green”, and my clients have enjoyed the ease of contract completions!