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Finally, Freddie Mac to allow e-signatures
Freddie Mac to allow e-signatures, other changes

Freddie Mac has released a new servicer bulletin announcing changes to its underwriting requirements that expand the use of electronic signatures and reduce duplicative borrower information verification.
The bulletin announces the following changes:
Allowing electronic signatures for certain loan application documents. Servicers may begin using electronic versions of certain initial loan documents for the origination processes as outlined in the Servicer Guide.  With this change, servicers will be able to take advantage of the operational efficiencies and quicker processing that electronic transactions provide. Eliminating certain Social Security Number (SSN) validation requirements.  To reduce redundancy in the postclosing quality control (QC) review process, servicers are no longer required to validate each borrower’s SSN if the servicer validated it during loan origination or the preclosing QC review.  However, if a mortgage broker or correspondent performed the SSN validation, the servicer is still required to validate the SSN during the postclosing QC review. Removing the list of third-party employment/income verification service providers.  To provide servicers with more flexibility in verifying employment and/or income, Freddie Mac has removed the list of acceptable verification service providers from the Guide.  Income and/or employment verifications obtained from third-party sources remain acceptable, provided these ... more

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