The year 2014 is officially the year of the electronic signature. In mid-April, Wells Fargo Funding announced that it will be working with DocuSign, Inc. on expanding its acceptance of electronic signatures on mortgage-related documents. This announcement follows closely on the heels of the Federal Housing Administration’s announcement in January that it would be accepting e-signatures and lender-generated loan documents electronically.
This move by influential entities in the mortgage and real estate world such as the FHA and Wells Fargo is a huge step in the on-going transition to digital means of completing transactions.
“We are delighted that Wells Fargo Funding, one of the world’s most influential financial institutions, is taking strong, positive steps on behalf of its vast ecosystem of brokers to accelerate transactions and keep business digital,” said Ken Moyle, chief legal officer of DocuSign. “The rapid adoption of DocuSign by the real estate industry reflect the confidence and improved customer experience our solution provides for executing mortgage transactions. We believe it’s inevitable that financial institutions will follow the lead of visionary organizations like Wells Fargo Funding and adopt electronic signature for every transaction that requires a pen and paper signature.”
Mortgage Made Easier Through E-Signature Acceptance
As Wells Fargo looked into innovating its service for customers, issues such as improving efficiency and going paperless were paramount to the needs of the business in an ever-digitizing world. It was only natural for the mortgage lending company to team up with DocuSign, a leader in Digital Transaction Management (DTM).
All brokers, lenders and escrow and title companies will now be able to operate through mortgage transactions with all the ease of a few clicks of a keyboard and mouse. The DTM workflow put in place by DocuSign will expedite the process of mortgage paperwork, which will help to make real estate transactions easier, faster, more convenient and secure. Those worried that the electronic component exposes clients to risk of being hacked and breach of personal information can be assured that DocuSign guarantees not only that it meets Wells Fargo Funding’s security and compliance requirements, but it exceeds them.
Wells Fargo has made sure that the new operations will comply with strict, quality assurances that the mortgage process will adhere to all state and Federal laws and guidelines. In its most recent update to its Seller Guide, Wells Fargo clarified its requirements for participation in the e-delivery and e-signature process outlining specifically terms of eligibility, auditing capability and retention and compliance.
The guide stipulates that under the electronic procedures, all documents associated with closings will be eligible for the use of e-signatures unless otherwise prohibited by state or Federal law. It also puts in place the process to review an audit trail and introduces new requirements for record retention if further transparency of an electronic transaction is needed as a measure of governmental compliance on all levels.