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Consumer Banking and Payments Law: 11.8.2 FHA Electronic Signature Requirements

In early 2014, HUD specifically approved electronic signatures for FHA mortgages.612 HUD’s instructions for the use of electronic signatures include numerous protections to ensure that the mortgagor—the homeowner—intended to sign the actual document to which the electronic signature is attached, and that the document cannot be changed after this signature is attached. The instructions contain the following:

Consumer Banking and Payments Law: 11.1.4a The General Rule As to Validity of Electronic Records and Signatures

E-Sign provides that, notwithstanding any statute, regulation, or other rule of law, a signature, contract, or other record may not be denied legal effect, validity, or enforceability solely because it is in electronic form, and a contract may not be denied legal effect, validity, or enforceability because an electronic signature or record was used in its formation.24 For example, a contract may meet a statute-of-frauds requirement and be legally binding even if it is based on email communications.

Fair Debt Collection: 4.6.5 Where Consumer Has No Knowledge of Nature of Alleged Debt

A consumer’s proof that a transaction was primarily for personal, family, or household purposes is complicated where the collector is collecting from someone who was never involved with the debt—where the collector has mixed up the obligor’s identity or the consumer is an identity theft victim. The consumer has no knowledge of the debt, and so cannot testify from personal knowledge as to the purpose of the underlying transaction.

Fair Debt Collection: 4.7.1 Overview

The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

Fair Debt Collection: 4.7.2.1 Generally

The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts…349