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Bank of America no longer accepting "Digital Signatures" - according to an email today

By Kona Home Team (LUVA LLC) Lance Owens (RB-24133)

Real Estate Agent with Kona Home Team (luva llc) RS 62947

March 09, 2012 01:36 AM

Docusign may be a dinosaur before it even reaches puberty!

I have held off on the "electronic signature" or "digital signatures" craze for many reasons.

First of all: It seemed a little crazy that anybody would accept a click of a mouse as a legal, binding obligation by the person that "clicked" it. Have you ever really thought about it ? Don't get me wrong, I enjoyed the convenience of it, as much as the next guy.

But ask yourself this question - If you were selling your home, and you were going to finance it yourself, would you sign over title and rights to the property to someone, that just clicked a mouse? NOT ME. I want wet ink - I want DNA evidence on that mortgage note, I want physical proof - not electronic proof. And believe me - everybody calls me the gadget guy I have the latest and most up to date electronic gadgets, software, upgrades that a guy could imagine - but digital signatures was not on my list.

BTW - that scenario goes the other way too, if I were an investor, and I was going to write off $200,000 (average loss on a home in Hawaii) worth of your obligation in a short sale, I want the same physical proof that you were the one signing all the papers - that you actually put your "John Hancock" on the statement that swears your hardship is a real one, your loss of income is true..... I want to compare it the "note" you signed 5 years ago.

For years now I have run into this problem with many of the small lenders,and investors. But today I received an email from Bank of America - see below (copy and paste from email)

NOTE: Please DO NOT set a closing date for the last 3 business days of the month, to ensure an on-time closing. Also, BOA no longer accepts documents with digital signatures on them.

REALTORS: Save yourself time, down the road, take a few extra minutes and get the "wet ink' signature on your documents.

Buyers: Same here, save your frustration for something else, print, sign, and scan back to your bank/realtor/escrow officer what ever documents require a signature.

Sellers: Same here, save your frustration for something else, print, sign, and scan back to your bank/realtor/escrow officer

Hope this helped

Aloha and Mahalo

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Deborah L. Kessler

Hawaii Life Real Estate Brokers - Kapaa, HI

Kauai Broker

Lance, I have not found this to be the case. I have 3 short sales right now with BofA and they have been through the evaluation phase and are approved by the negotiator, just waiting for the approval letter and all have electronic signatures on the contracts. It was never once mentioned that electronic signatures weren't allowed. I did have one a few months ago that wanted wet signatures and when I questioned the negotiator I was told it was a request of that particular investor and not from BofA. I LOVE using electronic signatures for contracts, the documents are much more legible. In Hawaii, as you know, we often have buyers and sellers in different areas of the world and printing out and scanning back and forth greatly reduces the readability of the document. So much so that I once had a contract declined by a lienholder. I do agree that it wouldn't be a valid purpose in a deed or mortgage. I don't know of any instance that requires a document to be recorded that would allow an electronic signature.

Mar 10, 2012 02:00 AM

Kona Home Team (LUVA LLC) Lance Owens (RB-24133)

Kona Home Team (luva llc) - Kailua-Kona, HI

2024 Real Estate Expert - Hawaii Island

Aloha Debbie

I was surprised also - I do nothing but short sales, and as you know we have that free "digital signature" with Hawaii Information Service. But I cut and pasted that remark from my email yesterday. I bet they have a few investors requiring wet ink, so they are probably slowly rolling it out across the board. Either way, I always try to get "wet" signatures when possible.

Are you guys as busy as we are?

Mar 10, 2012 02:17 AM

Anonymous

Eric Chavarria

You can stay in the stone age all you want. I can write 3 offers while you drive around collecting signatures. I understand that some documents you may want notarized but if you were buying my home and putting a significant amount of money down and closing through a reputable title company then how can it go wrong? Title companies won't close until the deal is funded and if I got my money who cares. Also if your email is hacked and someone buys a property using your name they would also have to fund it not to mention that esignatures are encrypted and password protected. It's easier to scan a wet signature and fax it than to fake a digital signature and it's corresponding I.D.

Feb 22, 2014 11:48 PM

Aloha Eric

Just FYI, I do not make up the rules, Bank of America sent this out as a notice to all agents that do consistant business with them.

For the year 2013, I personally did $8.65 million in transactions, with 55% of that being short sales - Bank of America contacted me, I didnt call them. You can be a cowboy and shoot from the hip, or you can do it right the first time, it makes for more succesfull closings.

Dont get me wrong, I agree with a majority of your reasoning, but I dont make up the rules

Aloha and Mahalo for posting your opinion

I wish us all success in the year 2014!

Feb 24, 2014 01:43 PM

Bank of America no longer accepting "Digital Signatures" - according to an email today

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Kona Home Team (LUVA LLC) Lance Owens (RB-24133)

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