VA Paves Way for Electronic Signatures

VA Paves Way for Electronic Signatures

BY: HUGH MOORE

The U.S. Department of Veterans Affairs (VA) has announced that it will begin accepting electronic signatures in conjunction with its VA Home Loan Program. The move anticipates what some hope will be universally acceptable e-signatures and the fully electronic mortgage.

“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, an electronic loan documentation company.

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.”

DocMagic officials said that the VA’s decision should prompt more mortgage industry participants to adopt the program.

“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, CEO 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.”

 

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