The news follows the Federal Housing Administration's (FHA) announcement in January that it would accept e-signatures on all loan documents, with the exception of the note. The FHA said it would likely start accepting e-signatures on notes by the end of this year.
In a release, DocuSign says the move by Wells Fargo to expand its acceptance of e-signatures ‘demonstrates continued momentum of electronic-signature acceptance among financial service providers for facilitating Digital Transaction Management (DTM).’
DocuSign says thanks to this development, 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.’
What's more, the company guarantees that it exceeds Wells Fargo Funding's security and compliance requirements.
As per the release, all mortgage documents generated and signed prior to closing, including disclosures and loan documents, are now eligible for execution with e-signature (except where prohibited) through Wells Fargo Funding.
An audit trail must accompany each closed loan package in which e-signature technology is utilized. In addition, there are new requirements detailed for record retention for supporting evidence of compliance at all levels.
‘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,’ says Ken Moyle, chief legal officer, DocuSign. ‘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.’
The move by Wells Fargo Funding to expand acceptance of e-signatures is detailed in its current seller guide.