FHA Home Loans Refinancing

FHA Goes Digital with E-Signatures on Home Loans


The Federal Housing Administration recently announced that they will be allowing electronic signatures on documents required with FHA house loans for Single Family Residences. The process of home buying has a lot of moving parts, so any ability to increase efficiency can be ultimately be a factor in lowering costs for consumers while increasing profitability for FHA lenders.

Each year the Department of Housing and Urban Development reviews the performance of FHA mortgages and adjustments are made to the FHA standards and underwriting guidelines. Factors like down-payment requirements, credit, loan to value and much more are considered when issuing annual lending requirements. Read more about FHA Loan Requirements for 2014.

HUD has approved FHA financing to begin accepting e-signatures for the following: origination, servicing and loss mitigation. FHA publishes their Mortgagee Letter 2014-03, where they revealed their support for electronic home loans.

Realtors Love Electronic Signatures with FHA Home Loans Because It Automates the Process
With the FHA’s recent announcement, real estate sales people will be allowed to pursue a streamlined process electronically because they can partner with brokers and lenders that have the choice to process their loans electronically. Read more about Silanis’s E-Signature Technology

Lending Companies Value Digital Signatures
The home financing industry is well versed on e-signatures for both the application, good faith estimate, loan disclosures and closing documents. It’s no secret that this technology provides quick and efficient solutions that ensure and compliance while minimizing the amount of time it takes to close a FHA purchase loan.

FHA Electronic Signature Performance Standards.

In their recent letter, the Federal Housing Administration highlights the following standards for the use of e-signatures on documents that will be accepted for FHA home mortgages:

Complying with all requirements of the ESIGN Act
Associating an electronic signature with a document;
Demonstrating intent to sign;
Requiring the single use of a signature;
Authenticating an individual’s identity;
Attributing the individual’s signature to their identity;
Managing issuance, use and loss of credentials;
Maintaining integrity of records and auditability of the electronic process.


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