The Veterans Administration (VA) recently decided to accept electronic signatures as the second of three steps to the realization of the fully electronic mortgage. The VA clarified its determination that electronic signatures are acceptable for use in conjunction with the VA Home Loan program in Circular 26, released late last month.
“This is great news and paves the way for the FHA to release a similar announcement soon, thus eliminating one of the very last obstacles preventing mass adoption of a full eClosing process,” said Tim Anderson, director of eServices for DocMagic Inc.
In its communication, the VA said that “lenders are not required to use electronic signatures in the course of closing VA home loans; but, if they choose to they must comply with the E-sign Act, just as they are required to comply with all federal laws.”
Anderson pointed out that as government agencies clarify their position on accepting electronic signatures, industry participants will feel free to adopt them, solving many compliance-related problems in the process.
“There can be no doubt that electronic documents, coupled with electronic signatures, are easier to track, safer for the borrower and more expedient for the industry,” said Dominic Iannitti, chief executive officer of DocMagic. “We’re very pleased to see the government providing clarity on this issue and expect to see increased eSign adoption in the near future.”
DocMagic eSign is free to all DocMagic customers.