Ginnie Mae recently published a memorandum (APM 20-01) to all participants in Ginnie Mae programs authorizing the temporary use of digital signatures on certain forms, effective immediately. Specifically, Ginnie Mae will temporarily allow for the electronic execution and transmission of the Release of Security Interest (Form HUD 11711A) and the Certification and Agreement (Form HUD 11711B).
Ginnie Mae currently generally requires the original Form HUD 11711A to reflect the wet signature and title of the individual signing the form on behalf of the interim lender, and the Form HUD 11711B to reflect the wet signature and title of an authorized officer of the issuer.
The temporary authorization for electronic signatures to meet the above requirements allows Forms HUD 11711A and HUD 11711B to be signed and transmitted electronically between interim lenders, issuers, and document custodians, provided the following conditions are met: (i) the electronic signature is performed, affixed, or reflected such that it allows a person reading the form to identify the name, title, and business name of the signor (and is not an audio recording, a video recording, or comprised exclusively of biometric data); (ii) the forms are maintained in a PDF format; (iii) the document custodian can reproduce a hard copy (i.e., a print out) of the PDF file; and (iv) issuers ensure, prior to electronically transmitting the forms, that document custodians are able to receive the electronic forms and reproduce print outs before transmitting them for the initial certification review.
This authorization will remain in effect only until the COVID-19 crisis has been mitigated (or as otherwise directed by Ginnie Mae), at which point the original wet signature requirements will be enforced with respect to these forms – i.e., the issuer must deliver Forms HUD 11711A and HUD 11711B with wet signatures to the document custodian for completion of the final certification.