Can Mortgages Be Signed Electronically? A Comprehensive Guide

The digital age has revolutionized the way we do business, and the mortgage industry is no exception. Loans closed through the online remote notarization process may include wet ink signed notes or electronically signed notes, depending on the lender's approval. The electronic signature of initial disclosures has achieved widespread adoption in the mortgage industry. Closures with the official signature of the final promissory note, however, continue to be done in person and signed on paper.

In contrast, an electronic notarization requires physical presence, but the borrower and notary can sign electronically. With purpose-built solutions for mortgages, DocuSign helps you keep up with changing regulations while providing an easy experience for users and employees. Moir pointed to the MERS registry, a platform that is a record of all electronic notes in the mortgage space. During COVID-19, lenders may want to consider relaxing wet signature requirements on promissory notes to the extent that risk tolerance allows, while redoubling efforts to ensure a high level of documentation standards. Whether guiding clients through an application, requesting electronic signatures or notarization, or assembling closing packages in a secure digital workspace, DocuSign can help you realize a comprehensive digital mortgage process. Closing a standard mortgage generally involves all parties sitting around a table and signing piles of documents.

All documents are signed electronically, and the borrower and notary meet via webcam rather than in person. For example, you may be able to use electronic means to send and obtain signatures on documents before closing. As a result of this significant risk, many lenders require a wet signature on the promissory note or, alternatively, on the notes above a certain dollar threshold to minimize this risk. Rocket Mortgage, LLC, Rocket Homes Real Estate LLC, RockLoans Marketplace LLC (which operates as Rocket Loans), Rocket Auto LLC and Rocket Money, Inc. This results in significant variability in acceptance, making it almost impossible for lenders involved in transactions involving real estate to accept electronic signatures on recordable instruments.

Rosanne Pacana
Rosanne Pacana

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