HUD to Permit e-Docs in Transactions; Realtors® Are Ready!

Washington, DC, April 08, 2010

The National Association of Realtors® hailed the decision by the U.S. Department of Housing and Urban Development to allow electronically signed documents in transactions involving home loan guarantees by the Federal Housing Administration.

In a Mortgagee Letter released today, HUD announced guidance for accepting electronically signed documents from third parties, that is, sales contracts.

“This is a great step forward in speeding up the real estate transaction and making it easier for buyers, sellers and real estate professionals to complete transactions timely and efficiently,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associate in Tucson, Ariz. “We applaud FHA’s refreshing attitude towards modernization and making electronic signature capabilities acceptable for its mortgage transactions.”

Golder also noted that since last fall, Realtors® have been helping buyers and sellers sign bids and closing documents online through NAR’s REALTOR Benefits® partner, DocuSign, the leading provider of on-demand electronic signature solutions. DocuSign is also an investment of Second Century Ventures, NAR’s venture capital arm.

“Realtors® are industry innovators,” said Dale Stinton, NAR chief executive officer. “The ability to use electronic signatures in real estate transactions is a valuable tool for the consumers and the real estate industry. We are pleased that the FHA has taken this important step to advance their use in FHA mortgage transactions.”
The DocuSign e-signature process is both convenient and legally compliant, Stinton said. Rather than driving across town to get a signature or forcing their clients to find a fax machine, real estate professionals are using DocuSign to execute agreements with buyers and sellers electronically, eliminating the old process of printing, faxing, and waiting for the return fax.

Realtors® can speed up sales transactions, increase client satisfaction and maintain a competitive edge on most transactions, including FHA loan guarantees.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.