www.hudclips.org 


U. S. Department of Housing and Urban Development
Washington, D.C. 20410-8000

November 6, 1995
 
Mortgagee Letter 95-50
 
TO:  ALL APPROVED MORTGAGEES
 
SUBJECT:  Electronic Signatures on Appraisal Reports
 
     This is to inform you that the Department of Housing and
Urban Development (HUD) will accept electronic signatures on
appraisal reports and to reiterate the acceptance of laser-
printed photographs for appraisals.
 
     The Department is aware of advanced electronic technology
and the benefits it affords homebuyers, lenders, and appraisers.
Therefore, beginning January 1, 1996 the effective date of the
Appraisal Standards Board's (ASB) statement on Appraisal Standard
No. 8,  HUD will accept the procedure of electronically affixing
a signature to an appraisal report, provided certain security
measures are taken.  In conformance with the ASB's statement, all
appraisers electronically signing a report must have a digital
signature security feature built into their software program.
The appraiser should ensure their signature is protected and only
the appraiser maintains control of their signature.  This control
may be maintained by a personalized identification number,
security cards or other hardware devices, where the appraiser has
sole personalized control of affixing their signature.
Electronically affixing a signature to an appraisal report
carries the same level of authenticity and responsibility as an
appraisal report with an ink signature.
 
     The Department will also accept laser-printed black and
white copies of photographs and photographs produced by
digitized cameras which are of adequate size and clarity, showing
enough detail for the purpose intended.  Original photographs are
not required as long as acceptable laser-printed copies are
supplied.
 
        Electronic transmission of an appraisal report will be
between appraisers and lenders.  Appraisal reports will not and
cannot be received by the local HUD Offices electronically.  The
acceptance of electronic signatures on an appraisal report does
not eliminate the appraiser's responsibility of supplying the
local HUD Office with a complete Copy Five of each appraisal
performed.
 
     If you have any questions, please contact your local HUD
Office.
 
Sincerely yours,
 

Nicolas P. Retsinas
Assistant Secretary for Housing-
Federal Housing Commissioner
 
.