Will HUD insure a loan if the lender has a faxed, rather than original, copy of the counseling certificate?
Date Published: September 2015
No. If a lender has a faxed copy of a counseling certificate bearing the signature of the borrower and counselor, or, in the case of phone counseling, a copy of two different certificates, one signed by the borrower and one by the counselor, then the lender may begin to process the loan application by obtaining a case number, ordering the appraisal and title work, etc. However, for insuring purposes, the lender must have in their possession an original certificate bearing the wet signatures of both the counselor and borrower, or, in the case of telephone counseling, separate certificates with the wet signatures of the client and counselor, so they can submit certified true copies in the case binder.
For more information view the Submission of Case Binder Documents Section of Mortgagee Letter 2004-39.