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HUD Mortgagee Letter 2014-03: Electronic Signatures


January 20, 2014


Mortgagee Letter 2014-03


To:  All FHA-Approved Mortgagees


Subject:  Electronic Signatures



This Mortgagee Letter (ML) announces that FHA will accept electronic signatures conducted in accordance with the performance standards outlined in this ML on documents requiring signatures included in the case binder for mortgage insurance, servicing and loss mitigation documentation, FHA insurance claim documentation, and on HUD's Rel Estate Owned (REO) Sales  Contract and related addenda unless otherwise prohbiited by law.


This policy applies to FHA Single Family Title I and II forward mortgages and Home Equity Conversion Mortgages.


Effective Date


The policies set forth in this Mortgagee Letter are effective immediately.


Legal Authority


The Electronic Signatures in Global and National Commerce (ESIGN) Act Pub. L. 106-229, § 1 (June 30, 2000), 114 Stat. 464, codified at 15 U.S.C. §§ 7001-7006.  The ESIGN Act encourages agency acceptance of electronic signatures. The ESIGN Act also grants agencies with interpretive authority the ability to specify performance standards to assure accuracy, record integrity, and accessibility of records that are required to be retained.1



Affected Topics


ML 95-50; ML 01-01; ML 10-14; HUD Handbook 4155.1 1.B.1.k, Policy on Use of  Electronic Signatures on Third Party Documents. Electronic signatures meeting the requirements of this ML will now be treated as equivalent to handwritten signatures.  Nothing in the Mortgagee Letter affects existing FHA requirements as to who is authorized to sign any specific document.



1ESIGN § 104(a)(3). 


Please click here to view the online Mortgagee Letter in its entirety