Paperless mortgage advocates welcomed the Federal Housing Administration's decision to begin accepting electronic signatures but warn the wording of the new policy is confusing and will likely require further clarification for lenders to adopt it.

The Jan. 30 Mortgagee Letter immediately allows lenders and servicers to use e-signatures on the FHA's documents for insurance endorsements, servicing and loss mitigation, insurance claims and real estate owned property sales. The document also sets a path for e-signed promissory notes, also known as e-mortgages, at the beginning of 2015. But the ruling contains some puzzling language.

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