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.

Interesting Facts About DocuSign and Electronic Signature

• Surpassed 4 million electronic signature users and exceeded 78 million eSignature events to date.
• Supports more than 30,000 customers from large enterprise organizations to individual professionals by consistently delivering 99.993% uptime.
• Recognizes and serves specialized customer needs with exclusive tailored editions—DocuSign REALTOR® Edition and DocuSign for Salesforce, DocuSign for Salesforce Real-Time Quotes and DocuSign for Salesforce Chatter Enabled.
• Dominates the SaaS-based eSignature market with an estimated 70 percent market share.
• 66% of U.S. adults wish they could complete and e-sign certain forms and business agreements online

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!

Tom Gonser on Real Estate Today

This weekend’s theme on Real Estate Today Radio, “From Contract to Closing” includes a discussion about eSignature, the perfect tool for getting your offer on the table as quickly as possible.

Real Estate Today’s Gil Gross sat down with our very own Tom Gonser, vice president of product strategy and founder of DocuSign, to talk about the fastest way to seal the deal using electronic signature.

DocuSign eSignature Delivers Green by Saving Businesses 837 Tons of Paper and Millions in Greenbacks

Electronic Signature Service Creates a Leaner, Greener and More Profitable Business Environment

Happy Earth Day! We’re celebrating Earth Day by sharing some fun eSignature and paperless business facts with you! Did you know that our award-winning eSignature service has created a more eco-friendly environment by reducing consumption of approximately 837 tons of paper or nearly 14,230 trees? DocuSign’s electronic signature service has significantly reduced businesses reliance on traditional, more antiquated methods of communication by revolutionizing the way documents are shared, signed and stored. DocuSign eSignature service eliminates the need to print, fax, scan, mail and store paper documents by providing a fast, green easy to use electronic document signing process.

Launching New App on Salesforce.com’s ChatterExchange, Accelerating the Market Shift to Cloud 2, the Next Cloud Computing Paradigm

DocuSign for Salesforce Among the First Social Enterprise Apps Available on the ChatterExchange, Now Live on AppExchange 2

We’ve launched our new eSignature app on salesforce.com’s ChatterExchange, helping to accelerate the market shift to Cloud 2, the next cloud computing paradigm. DocuSign for Salesforce, among the first apps to leverage the social components of Chatter, is now available in the Force.com platform. You can find these new apps on the ChatterExchange, a brand new category for social enterprise apps that is now part of AppExchange 2.

Federal Housing Administration to Accept eSignature for Real Estate Contracts

This is a great day for eCommerce.

As the chief legal officer at DocuSign, I’d like to share my thoughts, as we applaud FHA’s action today. Their decision to clarify their position on electronic signatures will help streamline the sale and financing of homes across the country. Buyers, sellers and agents can use DocuSign’s online process to eliminate the time, expense and environmental impact of printing, delivering and signing large stacks of paper documents, and mortgage lenders can take comfort in knowing that DocuSign’s e-signature process is designed to be legally compliant in all 50 states and is fully evidenced by a comprehensive audit trail.

The last time Federal Housing Administration released any formal guidance on electronic signatures was way back in 1996. Over the past 18 months, 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.

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

Want to Use eSign from DocuSign on Your Apple iPad?

Today brought several questions about using DocuSign’s electronic signature services on the Apple iPad. Doug Rybacki, director of product management for DocuSign, confirmed that DocuSign subscribers can create DocuSign envelopes on the iPad and it works well for templates and sending for eSignature with Freeform signing.

How-To Use Embedded Tagging in DocuSign for Salesforce, Salesforce AppExchange of the Week

Did you know you can collect electronic signatures and data without ever leaving Salesforce? With DocuSign for Salesforce, this week’s AppExchange App of the Week, you can track your documents and get real-time status and dashboards. When your deals are signed, they’re automatically updated in Salesforce!

Stay tuned to see what we have coming up for you in May! As the official and exclusive provider of electronic signature services through the NAR Member Benefits® program, we’ll be at the 2010 Midyear Legislative Meetings & Trade Expo in Washington, D.C. We’ll share news, product announcements and more – subscribe to our eSign RSS feed to stay in the know!

Happy Earth Day! We’re celebrating Earth Day by sharing some fun eSignature and paperless business facts with you! Did you know that our award-winning eSignature service has created a more eco-friendly environment by reducing consumption of approximately 837 tons of paper or nearly 14,230 trees? DocuSign’s electronic signature service has significantly reduced businesses reliance on traditional, more antiquated methods of communication by revolutionizing the way documents are shared, signed and stored. DocuSign eSignature service eliminates the need to print, fax, scan, mail and store paper documents by providing a fast, green easy to use electronic document signing process.

DocuSign users quickly drag and drop familiar yellow DocuSign Stick-eTabs® and data fields into documents, and electronically sends the documents from the DocuSign Console. The recipient immediately receives an email notification that a document is ready for e-signing. The document can be quickly accessed through a computer or any Web-enabled mobile device for eSignature, including Apple® iPhone® or iPad®, RIM® BlackBerry®, Google® AndroidTM, Windows Mobile®smartphone. The recipient adopts an e-signature and is guided through the process. Once completed, an email notification is sent to all parties with a link to the final executed document. The document can be archived digitally, eliminating the need to print or physically store. The result is a legally binding, fully ESIGN-compliant document supported by a comprehensive audit trail.

From the first Earth Day in 1970, going green has become a serious issue with businesses and consumers creating positive change by making simple changes such as paying bills online, using public transportation, recycling and other conservation initiatives. For businesses around the globe, DocuSign is a key factor in successful green initiatives.

The DocuSign eSignature Service eliminates paper waste, creating a leaner, greener and more profitable business environment.

DocuSign Earth-Friendly Factoids

In honor of Earth Day’s 40th anniversary, DocuSign has calculated additional green factoids to offer greater perspective on its role in providing a more eco-friendly alternative to conduct business via electronic signature. In addition to the successful rescue of 14,230 trees, the amount of paper waste DocuSign has reduced:

• If placed end-to-end, would reach 117,397,337 feet in total distance, which would line the edge of the continental United States TWICE or 22,234 miles—just 2,000 sheets shy of wrapping the Earth’s equator. This is also five times longer than either the 4,300 mile length of Amazon River or the 4,132 mile length of the Nile River.
• If stacked, would reach more than 2,846 stories in height. This is more than 2,745 more stories than one of the tallest buildings in the world, the Taipei 101. The Taipei 101 reaches 1,671 feet or 509 meters and is 101 stories in height.

Doug Wheeler, vice president of marketing at DocuSign, shares his thoughts on DocuSign’s green impact:

DocuSign eSignature service continues to revolutionize business by providing a cleaner, greener and faster way to streamline business processes while accelerating the sales cycle. DocuSign provides a healthy, sustainable, environmentally-friendly alternative to paper that is cost-effective, productivity enhancing and available from anywhere, anytime.

Our First Nest Realty uses DocuSign to accelerate the signing process for real estate documents. DocuSign has expedited the average turnaround of real estate documents from days to minutes. Houston-based Our First Nest Realty also leverages DocuSign as a green technology differentiator and as part of the company’s commitment to environmentally-friendly business processes.

Paul Silverman, Owner, Our First Nest Realty

Our First Nest Realty owner Paul Silverman first discovered DocuSign when working with a buyer for a hot property with multiple bidders. The need for an alternative to ink signatures became paramount when the buyer had to sign papers while out of state. Silverman registered for a free trial of the DocuSign eSignature service and within minutes was able to electronically send the documents for e-signature. His client received a DocuSign email notification, quickly adopted a signature and signed the documents online. Silverman presented the offer and it was accepted immediately. Later, Silverman’s client used DocuSign’s service from her Apple iPhone to electronically sign additional paperwork.

DocuSign came to the rescue. It helped streamline the process, provided my client an added service and reduced my company’s carbon footprint in just one service. Being able to sign from a mobile phone was a huge advantage. Clients always tell me how easy it is to DocuSign—it’s convenient, safe and legal. This is clearly the best tool I have ever used. – Paul Silverman, owner, Our First Nest Realty, and strong advocate of green technology

DocuSign has reduced or eliminated the need for Our First Nest Realty to print, fax or waste paper, ink and energy. He is pleased that he is helping clients with a hassle-free transaction and also upholding his pledge to the environment. Silverman holds a number of green designations and certificates including the National Association of REALTORS® Green designation and is a National Association of Homebuilders Certified Green Professional (CPG).

The DocuSign Advantage

After reviewing other e-signature solutions providers, Our First Nest Realty has continued using DocuSign based on the following key criteria:

• Ease of Use—DocuSign makes it easy for Silverman to send documents for client e-signature, and just as simple for clients to sign electronically. This intuitive service closely replicates the traditional signing experience, creating a positive client experience. DocuSign’s Designed for Mobile functionality provides Silverman’s clientele with anywhere, anytime electronic signing capabilities from an Apple iPhone, RIM BlackBerry, Google Android, Windows Mobile or any other Internet-enabled mobile device.
• Compliance—With DocuSign, Our First Nest Realty is assured of security as documents are an encrypted PDF. Signers are authenticated and contracts can only be returned only if fully completed, ensuring 100 percent compliance.
• Real-Time Visibility—DocuSign reveals the signing status of every agreement in real-time: when it was opened, when it was signed, the time the transaction has taken, and which contracts remain to be signed. Our First Nest Realty knows immediately when a real estate document is completed so deals can be transacted faster in a highly competitive market.
• Workflow Management—DocuSign automates Our First Nest Realty’s workflow processes. DocuSigned documents are returned only when complete, thereby reducing turnaround time from days to minutes.
• Cost-Effective—DocuSign reduces administrative costs associated with the traditional signing process, eliminating the need to print, fax or drive to meet clients for in-person signings
• Going Green—Environmentally-friendly, DocuSign aligns with Silverman’s green initiatives and further differentiates Our First Nest Realty from competitors using older, resource-wasting business processes.

For more information about the business benefits DocuSign provides Our First Nest Realty, read the detailed eSignature case study.

REThink Real Estate implemented DocuSign’s eSignature solutions to accelerate its real estate document signing process. This leading San Francisco Bay Area-based real estate firm employs DocuSign’s electronic signature services as the primary vehicle to complete real estate transactions.  DocuSign expedites the average turnaround time of real estate documents from days to minutes. DocuSign helped REThink Real Estate successfully expand and leverage DocuSign’s green technology as a market differentiator and competitive advantage.

Tara-Nicholle Nelson, MA, Esq. REALTOR®, Owner, REThink Real Estate

Owner of REThink Real Estate, Tara-Nicholle Nelson, MA, Esq. is a successful real estate broker, attorney, author and accredited buyer’s representative. Nelson recently represented a buyer in a competitive real estate transaction where the seller’s agent wanted to collect as many offers as possible to present to her client. To stall Nelson and her buyers, the seller’s agent sent a 150-page disclosure agreement that typically takes hours to fax to clients and hours for clients to sign and fax back. Instead, Nelson scanned the disclosure agreement and sent it via DocuSign to her clients. Her clients received an email notification, adopted an e-signature and returned the completed disclosure within the hour. The selling agent was obligated to present the offer to her client and it was accepted.

DocuSign has changed my life. I can’t imagine doing business without it. My clients love the convenience. Sometimes a buyer can make more than 20 offers before one is accepted. That means signing hundreds of pages at least 20 times! With DocuSign, it’s click, click, click and you’re done. – Tara-Nicholle Nelson

Nelson credits DocuSign with giving her more freedom—from paper, faxing and wasting time. By leveraging the Internet, Nelson notes that she and her clients can write, sign and submit an offer without being in the same state. With DocuSign, clients are rarely aware that Nelson is out of town for a speaking engagement or training. DocuSign also provides a much more polished and professional offer to agents, making Nelson’s offers appear more persuasive than the handwritten, scanned and faxed documents typically presented to sellers.

The DocuSign Advantage

After reviewing other e-signature solutions providers, Nelson chose DocuSign based on the following key criteria:

• Ease of Use—DocuSign makes it easy for Nelson to send documents for client e-signature, and just as simple for the client to sign electronically. This intuitive service closely replicates the traditional signing experience, creating a positive client experience. Plus, DocuSign’s Designed for Mobile functionality provides Nelson’s clientele with anywhere, anytime electronic signing capabilities from an Apple iPhone, RIM BlackBerry, Google Android, Windows Mobile or any other mobile device.
• Compliance—With DocuSign, RETHink Real Estate is assured of security as documents are an encrypted PDF. Signers are authenticated and contracts can only be returned only if fully completed, ensuring 100 percent compliance. Aged, confidential documents are archived and purged automatically, thereby safeguarding personal client information.
• Real-Time Visibility—DocuSign reveals the signing status of every agreement in real-time: when it was opened, when it was signed, the time the transaction has taken, and which contracts remain to be signed. REThink Real Estate knows immediately when a real estate document is completed so deals can be transacted faster in a highly competitive market.
• Workflow Management—DocuSign automates Nelson’s workflow processes. DocuSigned documents are returned only when complete, thereby reducing the turnaround time from days to minutes.
• Cost-Effective— DocuSign reduces administrative costs associated with the traditional signing process, eliminating the need to print, fax or drive to meet clients for in-person signings.
• Going Green— Environmentally friendly DocuSign aligns with Nelson’s green initiatives and further differentiates REThink Real Estate from competitors using older, resource-wasting business processes.

For more information about the business benefits DocuSign provides ReThink Real Estate, read the detailed eSignature case study on the DocuSign Web site!

Are you prepared for 2010? We recently learned that one of our DocuSign Electronic Signature for Real Estate subscribers, Paul Silverman of Our First Nest Realty, will be implementing DocuSign for all of the contracts signed by his clients in 2010.

Using DocuSign will greatly reduce or eliminate the need for any printing, faxing or other methods that use paper, ink or consume energy.

In addition to minimizing the impact on the environment, DocuSign electronic signature enables you to provide great service to your clients. Clients no longer have to print documents and then find the time to fax or scan the documents. With addendums, multiple offers, and all of the associated paperwork necessary for a real estate transaction, the old method of faxing, printing and scanning is time consuming.

If you’ve tried to read a document that’s been faxed several times, you’ve noticed how document resolution degrades every time the document is re-faxed. DocuSign electronic signature service also eliminates multiple faxes of the same documents, ensuring that documents are clear and legible.

Paul recently had a client on her way out of town and she did not have access to a printer, fax or scanner. Using electronic signature from DocuSign, she was able to e-sign the contracts and submit them within minutes.

Anytime I can help streamline a process, provide an added service to a client and reduce my company’s carbon footprint, it is an easy decision to make – Paul Silverman

As Paul has discovered, electronic signature from DocuSign not only enables your business to be green and environmentally friendly but also allows you to provide even better service to your clients.

As the year comes to a close, don’t forget to take a look at the DocuSign ESIGN Advantage Promotion for REALTORS® for a special offer available now through the end of the year.

What do you need to know to go paperless?

1. Back Up All of Your Documents!

In the traditional paper process, you photocopy documents, put them in a labeled folder and filed them in a filing cabinet so you can retrieve the document as needed.

In the paperless process, you need to back up your documents. You may decide to copy all of your files on a regular basis to an external drive. You may choose to store your documents using a hosting service. DocuSign provides its customers with document storage when they upload documents for electronic signature. Additionally, both senders and signers can download copies of completed documents for their own records.

2. Going Paperless is a Process

Going paperless takes time – you might start with using DocuSign Electronic Signature Service for your sales process and implement for your vendor purchase orders a week later. You may choose to digitize your old records as well and scanning your old documents will take time.

3. Over Time, You’ll Save Space

Given the amount of paper you currently have filed in filing cabinets and whether you choose to digitize your older paper documents, you may find that you can get rid of some of your filing cabinets. DocuSign has customers like Jay Thompson:

Thanks to DocuSign, I can keep an entire filing cabinet’s worth of stuff on a thumb drive.

Fewer cabinets mean more office space. A thumb drive means you can easily keep and access the documents you need, without having to return to the office before reviewing some papers.

4. More Benefits Than Less Paper

While going paperless often means less paper, not no paper, you’ll be able to see other benefits as well. Not only will you see a cost savings because you’ll stop printing, mailing, shipping and storing paper, you’ll also start to see time savings.

With DocuSign’s Electronic Signature:

• No more driving across town to a client for a signature
• No more following up because a line wasn’t signed or initialed
• No more difficult to read faxes
• Automatic reminder capabilities enabling you to set DocuSign to remind your clients to sign, so you don’t have to
• Workflow capabilities that mean you get the signatures you need in the order you need them, so you can set it and know DocuSign is taking care of the process for you

What else do you need to know to go paperless, especially in real estate? Let me know in the comments or write a post on your blog and leave me a pingback – I’ll take a look and leave a comment!

Several businesses, such as BuyATimeshare.com, have decided to go paperless. This decision has resulted in more environmentally sustainable, cost effective business practices that also streamline business processes. BuyATimeshare.com’s paperless office has also resulted in:

• Increased customer satisfaction
• Faster sales cycles
• Effective customer service
• Greater scale, with thousands more properties reaching the resale market than ever

What other businesses have “gone green”? Other real estate professionals have recognized the benefits of adopting paperless processes, including electronic signature and online contract execution.With more than 18,000 real estate professionals who have used DocuSign for electronic signature services, we’ve heard many testimonials of significant time savings as well.

According to BuyATimeshare.com:

DocuSign, which eliminates paper-based contracts, has tripled the speed of transactions, bringing properties to the resale market faster than ever.

BuyATimeshare.com now uses fewer than 20,000 sheets of paper each month since implementing their paperless business process. That’s one-fifth of the environmental impact that results in a positive impact on productivity.

Why bother with a scanner and data entry? With an electronic signature and online contract execution service like DocuSign, paper documents for signature never have to enter your office again.

You no longer need to type up a contract or disclosure, fill out the signer information, mark ‘x’s next to spaces for the necessary signatures and initials, fax the documents and wait. You can keep waiting while your signer gets the fax from the fax machine, reads the documents, signs and return faxes it back to you. Alternatively, your signer might set it aside on his or her desk, intending to get to it later and finally signing after you followed up half a dozen times.

Wouldn’t you prefer to just upload a document, fill out information about your signer(s), and have the DocuSign system send them an email with a secure link? Once your recipients click the link and the system authenticates them, they simply need to click to acknowledge that they are using electronic signature and adopt their own unique electronic signatures. Then, they read the documents and click to ESIGN where you’ve placed yellow stick-e-tabs. This process can take minutes instead of days. You’re now free to pursue more business.

Electronic signature and online contract execution saves DocuSign’s real estate customers significant time and money. Other organizations that have realized time and operational cost savings with the use of electronic signature and online contract execution include Yamaha, Great Lakes, RE / MAX, and Bellco Credit Union.

What technologies are you using to improve your productivity?