1 - If one borrower signs electronically must all borrowers sign electronically or could one borrower wet sign? Does the Act required all parties to sign electronically, if one does?

2 - If one document is signed electronically (e.g. application) do all loan documents (e.g. note) then have to be signed electronically as well?

Regulatory references would be much appreciated, if all parties or all documents must be electronically signed. Thanks!

What are you referring to - disclosures or the legal obligation documents?

Disclosures do not require signatures.

There is no requirement that everything has to be done electronically if one document is delivered in that manner.

Documents. And no requirement that all parties involved with the obligation sign in the same manner (e.g. wet or electronic signatures)? For example, borrower could sign the note electronically and the co-borrower could wet sign, with no compliance/legal issues - correct?

I don't see ANY requirements in ESIGN. It's entirely optional. There is a loose "handshake" standard if you and customer customers opt for the use of e-documents, but the whole law works like a driver's license and rules of the road--if you don't want to drive then there's nothing to comply with.

With regard to electronic signatures, ESIGN says "In general...a signature, contract, or other record relating to (a) transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form." That's an instruction to federal judges, not a legal requirement imposed on the signer or the businesses with whom s/he is dealing.

That's the law.

Above and beyond the law, business partners could impose more stringent standards on each other. In particular, if the banking product/service results in assets that are sold to, or insured/guaranteed by another party, these other parties could set standards that are stricter than state or federal laws.

Since I don't know what documents you are referring to, I will recommend if it's secondary market disclosures or documents that you reach out to your investors. Sometimes their rules are more stringent than regulatory requirements.

Compliance issue no - legal issues are a whole other matter and you need to set down with your legal counsel. Are your documents designed to be executed in counterpart, meet notary requirements, title insurance requirements, etc. There are a lot of moving parts to multiple borrowers executing documents when they are not in the same place.