Ginnie Mae Issues Clarification on Electronic Signatures and Documents

more+
less-

Ginnie Mae recently issued All Participant Memorandum 2014-01, which clarifies its position on electronic signatures and documents. In response to the Federal Housing Administration's recent announcement (Mortgagee Letter 2014-03) that it will begin accepting electronic signatures on certain loan documents, the Memorandum states that current Ginnie Mae policy is not to accept electronic signatures or electronic documents on notes, security instruments, or loan modification agreements. According to the Memorandum, the policy is due to concerns with maintaining the liquidity and negotiability of Ginnie Mae's pools and the individual mortgage loans contained therein.

Ginnie Mae is, however, exploring the issues associated with electronic instruments, and this year it will work to develop program standards to facilitate their use. To work through the applicable issues, Ginnie Mae is requesting input from issuers, document custodians, title insurers, legal experts, and investors. Participants can direct questions to their Ginnie Mae Account Executive in the Office of Issuer and Questions at 202.708.1535.

For additional information regarding FHA's position on electronic signatures, please refer to our February 14, 2014 Mortgage Banking Update.

Topics:  Digital Signature Standards, Ginnie Mae, Mortgages, Signatures

Published In: Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »