Digital signature and FNMA

[wyecoyote]

Ok all I have the USPAP guideline on signatures and electronic reporting. However, a client has requested the FNMA and FreddieMac guidelines on this. My thoughts are you are the lender you should have a copy there. However, me being in the good mood that I am I said just a second.

So, I'm posting here does anyone know the FNMA/Freddie Mac guidelines on this?

 

[Pamela Crowley (Florida)]

I don't recall anything in the Fannie or Freddie guidelines regarding digital signatures, but that doesn't mean something about this isn't in there. Go to the Fannie and Freddie forum here, find the early post for the complete guidelines and see if you can find anything there.

The USPAP item about this was taken out for 2002. The only reference to a signature I found in 2002 USPAP is page 5, lines 166 - 170. This does state: "..., where the appraiser has sole personalized control of affixing the signature."

 

[Farm Gal]

I was hoping someone with a better memory weighed in on this one...

I 'sort of' remember a 'comment by reference' which did state that e-sig's were acceptable as long as they met USPAP standards... which since the arrival of USPAP 2002, results in acceptability as mentioned above by Pam... can't recall exactly where though...

 

[wyecoyote]

Lee Ann/Pamela

Thanks for the replies. Looked up the FNMA guidelines on the posting that you had and saved them for future reference. Here is the FNMA states on the issue.

Section 203 – Appraisal (or Property Inspection) Reports
A lender may accept an appraisal report that is transmitted electronically using facsimile (fax) machines, Internet connections, wireless transmissions, or any other types of transmissions that use public or private telephone lines-as long as the appraisal report adequately identifies the appraiser and includes a reproduced signature of the appraiser whose name appears on the report, and the lender represents and warrants to us that the appraisal report was created by the appraiser identified on the appraisal report and that the appraisal report is the complete and unaltered report submitted by the identified appraiser. The lender may store any appraisal reports it receives (whether they are originally provided as paper documents or in electronic format) by using any photographic, electronic, optical, or other storage technology that enables it to retrieve and reproduce a complete and clear copy of an appraisal report (and its related addenda, photographs, and attachments) at any time in response to a request from us. Regardless of the transmission or storage method used, the lender will be responsible for the accuracy of the information and the integrity of the documents and for assuring that the appraisal was prepared in accordance with our appraisal guidelines.

Ryan

 

[Jo Ann Meyer Stratton]

I use the following paragraph in my addendum to every report I send as a pdf file. Got most of the wording from 2001 and earlier USPAP.

Digital Sinature:
The software programs used to transfer the report electornically provide digital signature security features for the appraiser signing the report. The appraiser that has signed (affixed an electornic signature) to this report has ensured that the signature(s) is/are protected and the appraiser has maintained control of the signature. Electronically affixing a signature to a report carries the same level of authenticity and responsibility as an original ink signature on a paper copy report.

 

[Farm Gal]

Thanks Ryan!

Aside from that paragraph which states that the LENDER is responsible for the accuracy to the report (something to remember if any of us gets sued.. :evil: .. after some scum changes somethign on a perfectly good report!!!) there was some other small mention re: USPAP....

JoAnn: despite my frequent use of your generously posted addendums, on this one I will pass, as I sort of see a 'guaruntee' in there that I wouldn't want to back up if it came to a dog fight: It sort of sounds like you warrantee the work to be forever free of tampering, whereas I perceive endless possibility for someone to tamper with a document once it has left my hands. I much prefer the above quoted paragraph! It places the responsibility squarely where it belongs, on the shoulders of the lender possessing the report!

 

[Jo Ann Meyer Stratton]

Thank you Lee Ann---I have now put on my thinking cap, there probably will be some changes to my templates in the near futue! That is my selfish reason for so blithely sending out my templates---so that I can improve and word sentences in a better manner.

 

[Jo Ann Meyer Stratton]

Okay--I have thought--and the following is what I have come up with. How does this sound?

"The software programs used to transfer the report electronically to the client provide digital signature security features for the appraiser signing the report. In the process of transferring the report to the client, the appraiser that has signed (affixed an electronic signature) to this report has ensured that the signature was protected and the appraiser maintained control of the signature. Electronically affixing a signature to a report carries the same level of authenticity and responsibility as an original ink signature on a paper copy report. Per Fannie Mae guidelines in Section 203, a lender may accept an appraisal report that is transmitted electronically. The lender is to represent and warrant to Fannie Mae that the appraisal report was created by the appraiser identified on the appraisal report and that the appraisal report is the complete and unaltered report submitted by the identified appraiser."

 

[Farm Gal]

BINGO!!!
Great rewrite - Jo Ann!!!

And as you so gereously have offered to share, I think I am going to lift it as whole cloth make a couple minor alterations jsut to suit my style, and run with it :!:

I think you got it nailed !

 

[George W Dodd]

I have a letter from Joseph Biegel at FannieMae. He is the Deputy General Counsel. The letter reads in part as follows:

"Fannie Mae will accept mortgage loans for purchase that involve an appraisal report that conforms to Fannie Mae's current Selling Guide requirements but for which the appraiser has affixed his or her signature via an electronic, digitized or other method that is secure and irrevocable and that the appraiser used with the intention of binding himself or herself to the accuracy and completeness of the appraisal report."