Wells Fargo Funding Expands Acceptance of Electronic Signature
|April 17, 2014
Wells Fargo Funding is expanding its acceptance of electronic signature on mortgage-related documents by partnering with DocuSign Inc.
Following on the FHA’s announcement in January that it would accept lender-generated loan documents electronically, the move by one of the nation’s leading mortgage investors demonstrates continued momentum of electronic signature acceptance among financial service providers for facilitating digital transaction management (DTM).
Digital transaction management can expedite processing of mortgage paperwork, making real estate transactions easier, faster, more convenient and secure, while minimizing paperwork, reducing errors and assuring compliance with all applicable legal regulations. DocuSign said all of its customers involved in mortgage transactions, including brokers, lenders, and escrow and title companies, may operate with the assurance that mortgage transactions with Wells Fargo Funding can be completed in a 100 percent digital workflow with DocuSign’s DTM Platform. DocuSign guarantees that it exceeds Wells Fargo Funding’s security and compliance requirements.
The move by Wells Fargo Funding is detailed in an update to its Seller Guide, clarifying its requirements and simplifying its e-delivery/e-signature approval process. Requirements that will be of particular interest to DocuSign users include:
- Eligibility: All documents generated and signed prior to closing, including disclosures and loan documents, are now eligible for execution with electronic signature (except where agency and/or state or federal law prohibits the use of e-delivery and/or e-signatures).
- Auditing: An audit trail must accompany each closed loan package in which eSignature technology is utilized.
- Retention and Compliance: New requirements are detailed for record retention for supporting evidence of compliance at all levels (federal, state, agency, Wells Fargo Funding, etc.).
“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 for DocuSign. “The rapid adoption of DocuSign by the real estate industry reflects 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 formerly required a pen and paper signature.”
DocuSign warrants that its products comply with the U.S. ESIGN Act, state laws modeled after 1999 UETA, and certain key aspects of the UK Electronic Communication Act (2000). DocuSign meets specialized FDA, FTC, FHA, IRS, FINRA rules, among many others, and provides extensive, configurable authentication options to verify every signer’s identity, according to the company
The fourth pillar of ALTA’s ”Title Insurance and Settlement Company Best Practices”
addresses the adoption of standard real estate settlement procedures and policies that help ensure compliance with federal and state consumer financial laws as applicable to the Settlement process. The Best Practices Framework includes a set of Assessment Procedures that can be used by title professionals to help lenders decide if a service provider meets different pillars of the Best Practices. A Certification Package also is available and can be used by title professionals to warrant and attest to lenders that they have implemented ALTA’s Best Practices.