Nov 28, 2016 16-25
Program Policy Changes
As part of our ongoing commitment to streamline our processes and procedures, we are pleased to announce the following policy revisions:
Current rule:
ELECTRONIC SIGNATURE POLICY
MFA currently accepts electronic signatures on all documents EXCEPT:
- MFA Compliance Addendum
- YTD Profit and Loss for self-employed borrowers
- Borrower and/or lender explanation letters **
- Verifications of employment (written and verbal)
- Rental verification letters from landlords
- Original note
- Original mortgage
- Signature affidavit
**Note:
E-mailed explanation letters without an actual signature from the borrower are acceptable if the borrower’s e-mail address contains an unmistakable name of the borrower. (Any other type of unsigned e-mail is not acceptable)
Third party e-mails without signatures are acceptable if the e-mail address contains an unmistakable name of the employer or landlord. (Any other type of unsigned e-mail is not acceptable)
New rule:
Effective for loans reserved on or after December 1, 2016, MFA’s electronic signature policy will be expanded to allow digital signatures on the following:
- Verifications of employment (written and verbal)
- Rental verification letters from landlords
COMPLIANCE ADDENDUM POLICY
Current rule:
MFA requires that the signatures and dates on the compliance addendum be within 30 days of compliance approval.
New rule:
Effective for loans reserved on or after December 1, 2016, MFA’s Compliance Addendum policy will be revised as follows:
The MFA Compliance Addendum must be signed and dated by the borrower, co-borrower(s), non-purchasing spouse, and Lender representative within 60 days of compliance approval.
The addendum will have an additional acknowledgement regarding second mortgage repayment. The acknowledgement will be located under the Employment/Additional Income section as question number five (5). The new addendum will be effective for loans reserved on or after December 1, 2016.
Thank you for participating in MFA’s program. Should you have any questions, please contact an MFA Homeownership Representative at 1-800-444-6880 or 505-843-6881.
