The news came out this morning that Freddie Mac has outlined the list of loan documents for which it will accept electronic signatures. Home buyers can now DocuSign their Freddie Mac loan documents — putting an end to the hassle of printing, faxing/scanning, or driving across town to sign.
“Effective immediately, federally regulated Sellers are permitted to conduct Electronic Transactions using electronic versions of certain loan documents in the initial loan origination process.”
What does it mean to the average home buyer and seller? Let’s take a look:
- All major loan documents can now be DocuSigned, including:
- Initial loan application (Final loan application at closing must be a paper copy and signed with pen & ink)
- Real Estate Purchase and Sale Agreement
- Initial Good Faith Estimate (GFE)
- Initial Truth in Lending (TILA)/Regulation Z Disclosures
- Initial Consumer Mortgage Product Disclosures
- Other Initial Federal & State Consumer Disclosures
- Internal Revenue Service (IRS) forms
- Other initial documents or forms required by the Seller for the Seller’s use only that do not require notarization or witnesses
- Acceptance is effective immediately, so there’s no need to wait during this year’s busy home buying/selling season.
- Quite simply, the process of buying or selling a home using Freddie Mac is becoming much less cumbersome to buyers and sellers, and real estate professionals can help them through a simpler, more convenient electronic process. It’
DocuSign’s legal team has been hard at work advocating the broader acceptance of electronic signature with Freddie Mac and others on behalf of our customers who want an easier, faster, more convenient way to complete real estate transaction. We couldn’t be more pleased with this news and will continue our efforts, such as this lender acceptance kit, to further drive mainstream eSignature acceptance!