FHA loan underwriters ---- still not accepting digital signatures?
Still, I love FHA loans. It is of great help to buyers that don't have much money to put down, but do have great credit history and employment verification. It helps everyone.
What is it about FHA loan underwriters and wet signatures?
We were told the loan was approved. So both buyers and sellers signed their respective documents. We were happy to move forward. This is a wonderful property. The seller did a wonderful job renovating and remodeling. They cooperated every step of the way. Both sides signed the contract and disclosures via Docusign. No problem there. Or so we thought.
Then BOOM!
Thursday morning when we were supposed to fund, the underwriter sends a condition that they want the pest report cleared. We responded that we didn't have one done. Therefore, we had to get a purchase addendum showing that this was waived.
Then the underwriter said the contract must have wet signatures, and that the contract couldn't be faxed. Rather, it had to be CERTIFIED!.
We scrambled to get wet signatures from all parties by 1:30 pm or we can't fund. Worse, we can't close escrow Friday. Worst, we'll have to re-do the HUD if close of escrow is delayed
Grumble....grumble....grumble...
Why on earth would the loan underwriter wait until the 11th hour to demand wet signatures?
We decided that we will make it a policy that on any and future FHA-loan escrows, and where parties used DocuSign in the beginning, we will have buyers and sellers sign again ---wet signatures this time ---- when they are at the title company.
It may seem repetive, but it beats having to go through blood-pressure raising moments.
But will someone please tell FHA to get with the program already!
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