Since the outbreak of COVID19 in early 2020, the adaptation of online finance features has been fast tracked, and one of those features is e-signing. With face-to-face restrictions in place across states, the finance industry had to adapt quickly. The adoption of shutdowns and isolation to combat the spread of the Virus, required lenders to adapt their processes and procedures to ensure they could continue to do business with their customers.
What is E-signing?
E-signing allows borrowers to use a digital imprint or signature, in place of an original wet signature on a document. Companies such as DocuSign, AdobeSign and PandaDoc are the prominent providers. The document is generally emailed to the Signor, and they are able to sign or acknowledge the document with a time stamp.
Is it a safe feature to use?
E-signing has been around for some time but many lenders had not embraced it until recently. As more lenders embrace it; more customers are having to use it. So is it safe? The process is very safe. It involves digital encryption and authentication of your identity.
Who issues the documentation for e-signing?
The documents are generally issued directly by the Lender you are applying through. Your Broker is generally not authorized to issue documents under this process, but they can guide you on the process of signing the documents.
How does the process work?
The documents are sent to you via digital form, your identification is confirmed and you are able to view all of the loan documentation prior to signing. Up on signing a digital receipt is provided and the documents are automatically uploaded to the lender.
It is important to check the documents thoroughly before signing. A witness is generally not required.
If you do not recognise the documents or the source, then notify your broker or lender immediately.
The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.
Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs.