MBA Says FHA and IRS 4506-T Allow E-Signatures 2012
November 13th, 2011
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Posts Tagged ‘escrow’
E-Signatures for Real Estate and Mortgage Industry – Ask the Questions?
October 1st, 2011
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Thinking about adding secure and efficient e-Signatures to your current
workflow? Well, quite bluntly, not all vendors offering e-Sign solutions are
the same. Just this week we heard of a REALTOR® that ‘grabbed’ an tablet e-Sign
app off the Internet and actually used this tool on a real estate transaction. When asked about levels of security, tamper evident audit trails, non-repudiation and lenders, Fannie Mae, County Recorders acceptance, etc., blank stare – huh?
As electronic and digital signatures affixed to contracts and agreements continue to gain adoption, seems like everyone is now jumping on the bandwagon. We also read where a Mortgage vendor, now claiming expertise, is offering this solution for Free, huh? Same compliance questions – who has certified or willing to accept these as binding?
When it comes to Real Estate and Mortgages, our 30 year old domain experience has advanced our vision for a complete digital, electronic and paperless real estate and mortgage transaction over the Internet. Having collaborated with Industry experts and pioneers for complete ‘buy-in’ we now enjoy at least a 4-5 year head start and provide the Industry’s ‘Holy Grail’ - a pure electronic end-to-end solution – from opening to closing (and beyond).
In another example, the real estate promissory note is probably the highest liability document any consumer will ever sign (representing the asset and in some residential markets that could translate to a $ 10 million or more risk) yet many so called e-Signed experts have not even approached, no less been certified by, the required compliance agencies, huh?
Not all e-Sign vendors are alike – ask the questions.
MBA Sends Letter To HUD To Accept e-Signatures
June 2nd, 2011
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| One Step Closer to a Complete e-Mortgage?We’re excited that with yesterday’s MBA’s announcemt that we have come a bit closer to a complete electronic and paperless real estate/ mortgage transaction. The MBA has sent a letter to HUD to permit e-Signatures on FHA Loan Origination Docs. This month we will be celebrating the 11th Anniversary of the e-Sign Act passed by President Clinton (June 2000) and look forward to having HUD join other Industry participants that currently have adopted and accept e-Signature technology, including real estate agents, title, escrow, closing agents, County Recorders and Secretaries of State. Read below article: |
| MBA News Link’s Sorohan, Mike ( June 2, 2011) The Mortgage Bankers Association sent a letter yesterday to HUD, asking the agency to permit use of electronic signatures for all mortgage origination forms required by FHA.The letter said eSignatures, acceptable under federal law and by FHA on certain documents, will help reduce processing issues that impair the homebuying process. MBA asked that FHA implement a revised policy accepting the use of eSignatures on all of its loan documents. “eSignatures will reduce the volume of lost paperwork, reduce signature fraud, reduce the time required to close a loan and may lead to lower borrower costs,” the letter said. MBA has long advocated modernization of FHA as part of its policy agenda. The letter noted the past 15 years has seen a trend toward automation of the loan application and underwriting process. Most lenders now have automated processes that allow applicants to apply online and to supply information to the lender electronically. Additionally, much of the processing is performed by lenders using online processing and underwriting tools. Ordering appraisals, credit reports and verification of deposit balances is frequently performed by automated, online processes. “This automation makes it easier for the consumer to provide needed data to the lender, reduces the application to closing timetable, minimizes the potential for lost documents and generally reduces the costs incurred by all parties,” the letter said. “Lenders have experienced increased productivity and a reduction in costs after implementing internal automated processes.” MBA said eSignatures would reduce costs for activities such as printing and mail couriers for both borrowers and lenders. “These benefits eliminate many of the annoyances of a paper-based process, including lost or inconsistent documents,” the letter said. “In addition, consumers would have greater flexibility and convenience within the home buying process because they would not have to change documents and related signing processes if they changed from a conventional loan to an FHA loan. All of [these] benefits ultimately result in lower costs for the consumer, as lenders pass on savings to remain competitive. Additionally, borrowers experience a more seamless and satisfying homebuying process.” MBA said FHA’s acceptance of eSignatures would align the agency with other government entities, including Fannie Mae and Freddie Mac, which have been accepting electronic signatures on loan documents for several years. “Conforming to accepted industry standards on all documents would expedite the mortgage process, reduce lender costs because processes could be replicated and fulfill consumers’ growing preference for conducting electronic transactions,” the letter said. “Notably, the Real Estate Settlement Procedures Act and the Truth in Lending Act rules recognize the use of electronic records to meet disclosure requirements.” The letter also noted most mortgage lenders that have automated the loan application process make use of electronic signatures for other forms and consumer/lender interaction, citing control mechanisms used conform to the Electronic Signatures in Global and National Commerce Act passed by Congress and signed into law in October 2000. “Accordingly, controls utilized to protect consumer and confidential data include encryption, tamper evident seals of e-signed documents, two-factor identity verification and other controls required under the ESIGN Act and industry custom,” the letter said. “MBA’s members are currently using such controls, and would continue their use in any FHA eSignature process.” To address concerns raised by FHA about mortgage fraud, MBA said it believed processes built in the “e” world could mitigate many issues currently in today’s paper process. “Many electronic mortgage systems incorporate additional borrower authentication capabilities that well exceed the standard of the traditional notary asking to see a driver’s license for validation,” the letter said. “For example, some systems prompt the borrower to respond to authentication challenge questions to establish true identity. In addition, tape recording, on line session recording, and audit trails further safeguard the e-signature process in the event of litigation. These safeguards are not only beneficial to the lender and FHA, but also provide convenience and protection to the homebuyer. Many commercial businesses have long adopted these security standards so consumer awareness and education would be minimal.” |
Settleware E-Signature Platform Expands Auditor Access to Escrow and Closing Industry
May 18th, 2011
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FOR IMMEDIATE RELEASE ____________________________________________________________________________________
Settleware e-Signature Platform Expands Auditor Access to Escrow and Closing Industry
Settleware Secure Services, Inc. has been the ground-breaking electronic and digital signature leader since 1999. The company recently unveiled a newly enhanced external ‘auditor’ feature which meets compliance standards and will help external auditors and examiners gain secure access.
Newport Beach, CA – MAY 17, 2011 – Settleware® Secure Services, Inc, the pioneering electronic signature and secure form workflow leader to the Real Estate, Escrow and Mortgage Industry today announced the release of an enhanced external ‘auditor’ feature. “Permission and rules based access to archived records to a secure e-vault satisfies a critical need for all escrow, settlement and closing agents in order to be compliant with state and federal regulations’ stated C. Richard Triola, President & CEO.
With more than 3 decades of real estate and escrow domain experience, Settleware (formerly ezEscrow.com) recognized that licensed escrow/settlement companies are required to complete financial audits every year to ensure compliance with State regulations and most licensed closing agents are subject to random, surprise examinations by the governing bodies.
“With the increased awareness that electronic signatures and electronic escrow will soon become the standard for all escrow and closing agents we needed to provide special roles and privileged access to not only State examiners but also independent CPA firms that need to review files and complete their audits. Granting these professionals secure access to view all digital and electronic files allows the Industry to readily adopt this “Game Changing’ and patented technology.
Featured in the best seller ‘Game Changers- Leading Entrepreneurs and How they are Changing the Game..’, (Amazon’ rated #1, November 2010), Triola continued to describe how an e-Signature affixed to any/all contracts and agreements will become the standard, eliminating the ‘friction’ associated with paper, faxing, scanning and expensive overnight deliveries of agreements, and urges all Escrow, Settlement and Closing Agents to explore not only the immediate benefits to all clients and stakeholders but to also become stewards and drivers of good Corporate Social Responsibility. With the click of a mouse and zero carbon footprints it is not difficult to understand the impact on our environment for generations to come.
ABOUT SETTLEWARE
Created by a 30 year real estate and escrow veteran, Settleware Secure Services, Inc. has been spearheading the initiative to facilitate a complete electronic and paperless real estate escrow/mortgage transaction over the Internet. For more than a decade Settleware is recognized as the pioneering leader of e-Signatures, e-Notarization and e-Recording workflow to the Real Estate/Mortgage Industry and offers the Industry’s first and only fully electronic and paperless, real estate escrow transaction over the Internet – from the initial purchase contract/ instructions to selling the highest liability promissory e-Note to the Secondary Investor . Settleware is the only patented e-Signature solution provider that has been certified by County Recorders (e-Recording), Secretaries of State (e-Notary), Fannie Mae (e-Notes) and MERS e-Registry (e-Vault), Wells Fargo (e-Disclosures) and One West Bank
To learn more how Settleware can partner to take your business to the next level contact us 888.632.3833 or visit us at www.settleware.com. Join the discussion by subscribing to the Settleware’s blog at www.settleware/blog and become a Friend on Facebook
Contact:
C. Richard Triola
Rick@settleware.com
2901. W. Coast Highway, Suite 200
Newport Beach, CA 92663
Direct 949.289.3299
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False Signatures Again-Is it Time For Lenders to Demand Secure e-Signatures?
March 18th, 2011
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It’s hard to believe that after more than a decade of the passage the Federal E-Sign Act (June 2000) we are still reeling from headlines like this:
More foreclosure irregularities alleged in Maryland
Former law firm employee says over 1,000 deeds were recorded with false signatures
(Read Full Article)
You have to wonder what else it would take for the Industry to adopt secure and compliant electronic signatures, records, contracts, agreements and processing? ‘Robo-Signing’, backdating and manipulative notarizations, people falsely ‘wet’ paper signing as imposters, etc.-astounding!
Now is the time for all good lenders, servicers and investors to reduce the ‘human error’ factor and protect all parties involved in one of the largest transactions anyone will make in their lifetime. identity verification, authentication, Tamper sealing, document integrity, secure e-Vaulting, etc. No longer an experiment – the time is now to stop the Madness!
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