The $3.8 billion MountainAmerica Credit Union has become the first financial institutionin the U.S. to close a Federal Housing Agency-insured loan withe-signatures rather than with ink and paper.

The Mar. 18 change allowed the credit union to reduce theprocess from 45 minutes or an hour down to 15 minutes or less. Inaddition, the electronic loan closing allowed the credit union tofund the loan in the same day it closed, executives said, adevelopment which is particularly good for Realtors.

“We are now a 100% electronic shop,” when it comes to loanprocessing and closing, said Amy Moser, vice president of MortgageServices at the West Jordan, Utah-based credit union.

Mountain America had used e-signatures to closeconventionally-insured mortgages since 2010, but had to wait forthe FHA to approve of the process, Moser explained.

In the previous process, borrowers would have to go the creditunion or title company to sign a pile of documents, most of whichthey had never seen before. In the new process, borrowers are ableto visit a website up to 24 hours ahead of closing to read andreview their closing documents. They then click a button to acceptthem.

At closing, borrowers only have to put a wet signature on thenotary statement along with the promissory note, which the FHA willnot accept electronically.

The borrowers also provide an electronic signature which goes toall the previously accepted documents.

Mountain America closed about 2,700 fixed rate mortgage loans in2013, worth roughly $413 million, according to NCUA records. Creditunion executives reported that roughly 60% of those refinancedother loans and 40% were used to purchase homes.