E-SIGN Act: Electronic Loan Document Delivery

Although the electronic age can make loan transactions more convenient, it can also cause complications.  Before your institution can benefit from the federal E-Sign Act and use electronic signatures and electronic documents, you must deliver the proper disclosures to your borrowers and obtain their consent.  You must ensure that your electronic documents and delivery system are “legally correct.”  In addition, the regulatory agencies expect financial institutions to understand how their electronic loan document system operates and how it satisfies the legal requirements for using electronic signatures, electronic contracts, and electronic document retention.