Though I recently shared information regarding electronic signature in the news, I realized I hadn’t yet shared what’s happening with e-signature in the policy arena. So what has happened with electronic signatures?

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FHA and Electronic Signature

In April 2010, Ken Moyle shared his thoughts immediately after the FHA clarified its acceptance of electronic signature, clarified in the Mortgagee Letter 2010-14. The last time Federal Housing Administration released any formal guidance on electronic signatures was way back in 1996. Since 2008, DocuSign’s real estate and mortgage origination customers have made it clear that FHA urgently needed to update and clarify its position on electronic signatures. And we heard you.

E-signed third-party documents, including real estate contracts, are now being accepted by the Federal Housing Administration (FHA).

Utah Supreme Court Provides Narrow Interpretation to Government Agency’s Right to Reject Electronically Signed Documents

After the FHA affirmed its acceptance of electronic signature, the Utah Supreme Court, issued a 15-page, unanimous ruling [Anderson v. Bell, No. 20100237 (Utah June 22, 2010)], as voters went to the polls for primary elections. Justices stated:

A signature under (Utah law) does not require a signor to physically handle a piece of paper and sign her name with a pen. An electronic signature is sufficient to satisfy the election code.

Ken provided perspective regarding the way the court eloquently and brutally exposed the weakness of the common argument about fraud and electronic signature use, noting that it reads well into the interpretation of UETA in 46 other states:

The Lt. Governor … contends that electronic signatures attached to a certificate of nomination lack ‘apparent authority’ as genuine signatures. This position is based on a theory that a holographic signature is self-authenticating because the reviewing party may merely look at the signature and see that someone put pen to paper to sign their name. In contrast, an electronic signature lacks apparent authority, because it appears as a typed list of names…. We are unpersuaded that an electronic signature presents special concerns regarding candidate fraud; a candidate could as easily handwrite or type fraudulent names onto a certificate of nomination.

Moreover, electronic signatures may be a better deterrent to candidate fraud because an electronic signature incorporates readily verifiable personal, but non-public, information. For instance, the signors of Mr. Anderson’s petition apparently had to enter a security code that corresponds to the last four digits of their drivers license number before their signature would be counted.

Congress Passes Resolution Declaring June 30th National ESIGN Day
U.S. House and Senate Acknowledge the Importance of eSignatures in Today’s Dynamic Business World on the 10th Anniversary of Electronic Signatures in Global and National Commerce Act (ESIGN)

In support of the measure, McDermott stated,

ESIGN has greatly improved the ability of companies in my district to be more effective and competitive in the global marketplace. I would especially like to acknowledge Seattle-based electronic signature platform provider, DocuSign, for being a leader in the electronic signatures and records industry, and for helping spearhead the coalition to recognize June 30 as National ESIGN Day. DocuSign recognizes that the benefits of e-commerce extend beyond the dollar values that are placed on business activity; with over 30,000 current customers, and having served over 4.5 million people to date, DocuSign provides its customers with confidence in the integrity and credibility of emerging electronic capabilities. They have been a leader in removing obstacles and barriers to business transactions online, allowing their customers to work faster, more reliably, and more securely.

In honor of the 10th Anniversary of ESIGN, we hosted the 2010 ESIGN Summit in San Francisco on June 30, 2010, with a live keynote address by President Bill Clinton (via satellite) and presentations from industry visionaries from salesforce.com, the National Association of REALTORS® (NAR), Box.net and DocuSign.

Electronic Signature Policy Roundup: FHA, Utah Supreme Court, and Congressional Resolution

Interesting Facts About DocuSign and Electronic Signature

To commemorate the 10th Anniversary of the ESIGN Act and National ESIGN Day, we’ve set a goal of collecting 1,000,000 electronic signatures – we need your help to reach this goal.

Click to eSign the “ESIGN Support Pledge.” You’ll be able to download the document after signing to share via scribd or slideshare – be a part of this historical event and ESIGN today!

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