Less than two months after the Federal Housing Administration began accepting e-signatures on loan documents, the first electronically closed FHA loan has completed.
The Department of Housing and Urban Development issued Mortgagee Letter 2014-03 in January indicating that FHA would start accepting e-signatures on a majority of single-family documents.
While FHA notes didn’t immediately qualify for e-signatures, FHA expects to be accepting e-signatures on forward mortgage notes by the end of this year.
On Monday, Stewart Title said that the first electronically closed FHA loan took place at Bonneville Superior in Midvale, Utah.
The transaction was completed utilizing Stewart’s eClosingRoom technology.
The mortgagee in the transaction was Mountain America Credit Union.
Stewart Group President of Direct Operations Glenn Clements noted that the closing, a purchase transaction, was immediately followed by the first electronic closing of an FHA refinance.
Stewart claims that it had the first non-FHA electronic closing in the country in May 2005.
