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#2026708 - 07/11/15 10:10 PM Use of signature pad to capture loan signature
runandswim Offline
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Joined: Mar 2010
Posts: 29
The customer is electronically signing the note only at the loan officer's desk by using the signature pad (not at their home computer). Does the use of an electronic siganture pad at the loan officer's desk to sign the note trigger the E-Sign Act requiring the notices regarding technology compatability and other requiremnts of the E-Sign Act? Please provide regulatory cite. Thanks

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eBanking / Technology
#2026709 - 07/12/15 01:06 AM Re: Use of signature pad to capture loan signature runandswim
rlcarey Offline
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Galveston, TX
Handwritten electronic digitized signatures have nothing to do with the E-Sign Act.
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#2027127 - 07/14/15 09:19 PM Re: Use of signature pad to capture loan signature runandswim
Andy_Z Offline
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E-SIGN is providing what would be a required written disclosure in e-form, the substitution of bits and bytes for paper and ink. Your digitized signature could be part of E-SIGN, but that doesn't make it E-SIGN.
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#2027136 - 07/14/15 10:00 PM Re: Use of signature pad to capture loan signature runandswim
Richard Insley Offline
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Toano, VA
It's a shame Congress chose a name for this law that yields the misleading acronym ESIGN. The only part of the ESIGN act that deals with electronic signatures boils down to "a signature may not be denied legal effect...solely because it is in electronic form." THAT'S IT. The act prohibits regulations and interpretations and doesn't offer a clue as to what constitutes an electronic signature and what does not.

Most of ESIGN deals with the delivery and use of electronic documents. These are the parts of the law that trigger pre-consent disclosures and the ESIGN test drive. As I read the original post, document delivery is not part of the question.

Although there may not be a laundry list of do's and dont's, associated with the act of obtaining a signature on a loan document, that doesn't eliminate other risks--primarily the risk of repudiation (borrower claims the "signature" is a forgery and refuses to honor the content of the "forged" document.) If you haven't already discussed this possibility with bank counsel, do it now. Take whatever steps necessary to guarantee that a judge somewhere out there in the future will accept that digitized image (which could possibly include an "X" by an illiterate person) in exactly the same way s/he accepts wet signatures and proceeds to grant judgements in your favor.
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#2027253 - 07/15/15 05:06 PM Re: Use of signature pad to capture loan signature runandswim
Andy_Z Offline
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And for those who love dates, we just recently passed the E-SIGN 15 year anniversary. Many banks seem to only now be warming up to E-SIGN and a lot of that seems to be due to additional disclosure rules.
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AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#2027267 - 07/15/15 05:33 PM Re: Use of signature pad to capture loan signature Andy_Z
Richard Insley Offline
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Richard Insley
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Toano, VA
Originally Posted By Andy Z
anniversary
Two of them, actually. ESIGN turned 15 on 6/30 and Magna Carta turned 800 on 6/15.
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