The $3.8 billion Mountain America Credit Union has become the first financial institution in the U.S. to close a Federal Housing Agency-insured loan with e-signatures rather than with ink and paper.

The Mar. 18 change allowed the credit union to reduce the process from 45 minutes or an hour down to 15 minutes or less. In addition, the electronic loan closing allowed the credit union to fund the loan in the same day it closed, executives said, a development which is particularly good for Realtors.

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

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

In the previous process, borrowers would have to go the credit union or title company to sign a pile of documents, most of which they had never seen before. In the new process, borrowers are able to visit a website up to 24 hours ahead of closing to read and review their closing documents. They then click a button to accept them.

At closing, borrowers only have to put a wet signature on the notary statement along with the promissory note, which the FHA will not accept electronically.

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

Mountain America closed about 2,700 fixed rate mortgage loans in 2013, worth roughly $413 million, according to NCUA records. Credit union executives reported that roughly 60% of those refinanced other loans and 40% were used to purchase homes.

Instant Insights /

Mountain America Marks FHA E-Signature Milestone

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