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| Sorting Out the eDisclosures: Speed Up Your Business Processes with an eDisclosure System |
By:
Alfred Siliano |
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A lot of mortgage professionals think that the rules that regulate early disclosures are complicated, time consuming and often unstable. This is the reason why using an esignature system makes it easier for brokers to disclose the features of a loan to their clients. They are also able to give the cost estimates to their clients if they go electronic. Sending disclosures electronically has more benefits than traditional mailing or fax systems. It saves time because borrowers can get the communications right away, and it also ensures that the broker is still in full compliance with the regulations. Electronic systems also allow the brokers to monitor and check the status of all his disclosures. The reports that a broker can generate from the system can tell him whether the borrowers already received the disclosures he sent.
Using an e sign system will also save the broker a lot of money by eliminating or at least reducing the office supply costs that goes to buying paper. Lenders who use the latest technologies also attract more borrowers. People are attracted to what’s new and cutting edge. By going electronic, you make your company seem savvy and professional, which is exactly what modern borrowers want. They’d rather see an update in their emails rather than something that looks like old, forgotten mail.
There are many providers of e-sign software, and choosing which one to use will be pretty basic---they need to have the technology, know-how and capacity to work with the kind of business you are running. However, bigger issues like legality also need to be taken seriously. Whenever you use electronic disclosures, there are specific legal requirements that make your disclosure valid. Two acts, the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA) outline the requirements that esignature systems have to follow to have legal validity.
To receive electronic correspondence, both the borrower and the lender must agree that they will receive information electronically. This must be done as soon as the transactions start, preferably during the first meeting. They also need to give consent in using e sign software.
Borrowers also need to receive a statement of what kind of hardware or software will be required to access and retain their electronic signatures. The esignature software must be compliant to Regulation Z, or the Truth in Lending Act, which requires all financial transaction reports be made available to the borrower. Using electronic signatures simply makes the process of acknowledging receipt and agreement of each page of the contract so much easier. Using electronic signature software also ensures that once the signatures have been affixed, the document can no longer be altered.
Using an e-sign system will help you have more efficient business processes. This allows you to focus on resources and on generating loans. Electronic systems can also greatly cut costs by cutting your paper purchases significantly. Most importantly, using an electronic system will allow you to take that first step into paperless business transactions, a trend that is definitely catching on in different types of businesses.
About the Author
Alfred Siliano is a business owner who frequently uses electronic signature software. For more information, go to http://www.docusign.com/ today. |
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