Cool Gadgets: Apple iPad, iPhone 4, Droid 2

While Apple’s iPad came out in the spring, the iPad continued the buzz this summer! With Designed for Mobile, you can use electronic signature from DocuSign on Blackberry, iPhone, iPad, Android and Windows Mobile phones.

However, the iPad’s size and utility means that you can create envelopes on the iPad with templates enabled, or send for electronic signature with Freeform signing. Take a look at this blog post if you want to use DocuSign on your iPad!

A Feature Friday blog post also highlighted another way you can use DocuSign if you get an email attachment that needs electronic signatures, with Email to Electronic Signature. Of course, you can also use this feature on your desktop or laptop as well as your iPad!

Ensuring Your Electronic Signature Stands Up in Court

Ken Moyle, DocuSign’s Vice President of Legal and Corporate Affairs and Chief Legal Officer, shared thoughts regarding issues your should consider so that your electronic signature will stand up in court.

When you do business electronically, you should anticipate the need to produce evidence that proves a given person signed a given electronic document on a given date. That means you should look at taking such steps as:

For the rest of Ken’s commentary, take a look at the blog post which also shares authentication and electronic signature process considerations to note when selecting a vendor.

Our real estate team is also excited to make a special offer to new subscribers – between now and Labor Day, get a $20 Visa® gift card when you sign up for a DocuSign prepaid annual plan! Members of NAR should sign up with their NRDS numbers to take advantage of their special pricing.

Enjoy the last days of summer!

Want to use e-Sign on Your 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. Stay tuned for more information about DocuSign’s upcoming DocuSign for iPad app and click the link above to learn how!

Of course, not everyone has an iPad or iPhone – we also offer the ability to use electronic signature on other mobile devices.

Want to use Electronic Signature on Your Mobile Device?
With “Designed for Mobile,” all DocuSign electronic signature service subscribers can access their DocuSign console from their iPad, iPhone, BlackBerry, Windows Mobile, and Google Android devices, which earned us finalist status at the Stevie Awards.

FHA and Lender Acceptance of Electronic Signature
Earlier this spring, the FHA has issued a mortgagee letter, clarifying FHA acceptance of electronic signature. Ken Moyle’s blog post on this topic from 2009 continues to be popular, especially with answers to situations around lender acceptance, such as:

My mortgage broker says the lender won’t accept electronic signatures

A few lenders have some policies in place that restrict electronically signed documents, but not all documents in a mortgage application file are the same. There is a difference between a mortgage closing document (such as an electronic note) and a supporting document (such as a real estate contract, addendum or disclosure). Supporting documents represent contracts between consenting parties that have already been consummated and are not part of the closing process. It is unusual for a lender to interfere with a real estate transaction by asking for it to be re-executed. Ask the broker or lender to clarify their position and to make sure they have all the information they need to make that assertion.

If you are unable to get your lender to accept a DocuSigned contract as part of a mortgage application, please immediately send the lender name and contact info to legal@docusign.com.

Ensuring Your Electronic Signature Stands up in Court
Ken Moyle, DocuSign’s Vice President of Legal and Corporate Affairs and Chief Legal Officer, has also shared his thoughts regarding issues your should consider so that your electronic signature will stand up in court.

When you do business electronically, you should anticipate the need to produce evidence that proves a given person signed a given electronic document on a given date. That means you should look at taking such steps as:

• Including authentication procedures to verify the identity of the signatory
• Maintaining evidence of the particular electronic document that was signed electronically
• Maintaining evidence of the electronic process that was followed in obtaining the electronic signature on the electronic document

For more information on any of these topics, click the links to read the complete posts. You can also sign up for a free electronic signature trial!

Question: While legally binding, electronic signatures are not recognized as sufficient evidence of an arrangement under current software revenue recognition rules. Does DocuSign have any information on any anticipated changes to those rules?

Answer, from Ken Moyle, DocuSign’s Chief Legal Officer:

Please ask your accounting advisers or auditors to produce the accounting rule or bulletin that supports the statement that “current software revenue recognition rules do not recognize electronic signatures as sufficient evidence of an arrangement.” There are some very large software companies that would be very interested to hear that their click-through and click-wrap agreements, while enforceable worldwide, are somehow not adequate to recognize revenue!

If the statement is based on the likely fact that the revenue recognition rules do not affirmatively deal with electronic signatures, it is incorrect in its assumption that such treatment is required in order for electronic records to be recognized as providing evidence of an arrangement.

Even before passage of the ESIGN Act ten years ago, it has been clear that a signed contract is not necessary to establish evidence of an arrangement. See SAB No. 101, which states in part:

Customary business practices and processes for documenting sales transactions vary among companies and industries. Business practices and processes may also vary within individual companies (e.g., based on the class of customer, nature of product or service, or other distinguishable factors). If a company does not have a standard or customary business practice of relying on written contracts to document a sales arrangement, it usually would be expected to have other forms of written or electronic evidence to document the transaction. For example, a company may not use written contracts but instead may rely on binding purchase orders from third parties or on-line authorizations that include the terms of the sale and that are binding on the customer. In that situation, that documentation could represent persuasive evidence of an arrangement.

But with the passage of ESIGN in 2000 the underlying legal foundation for entering into written contracts electronically has been firmly established. A contract or signature “may not be denied legal effect, validity, or enforceability solely because it is in electronic form”. This simple statement provides that electronic signatures and records are just as good as their paper equivalents, and therefore subject to the same legal scrutiny of authenticity that applies to paper documents. To the extent that evaluating the evidentiary value of a signature on a contract is in the purview of an independent auditor (if it is at all), the weight of an electronic signature should be afforded the same presumptions of authenticity as a handwritten signature. The evidentiary value of an electronically signed contract will, by virtue of its audit trail, often be far higher than anything produced via the typical manual signature process.

In short, there is no accounting rule that precludes electronically signed contracts, and DocuSign would be willing to deliver to your company any necessary assistance in demonstrating the veracity of the process behind the formation of these binding arrangements.

*Ken’s thoughts are shared in accordance with DocuSign’s Blog Disclaimer

We’re honored to be named a Top 50 Service Provider by Mortgage Technology magazine. Our inclusion as a Mortgage Technology Top 50 Service Provider was based on four major criteria—customer satisfaction, functionality, market share and viable revenue model. The providers on the list have satisfied users and show the ability to hold them by keeping those customers apace of the technology deployed by competing lenders.

According to Mortgage Technology, this year’s Top 50 Service Providers are mainstays with extensive mortgage experience. Although every year new companies make their way into the mortgage space, lenders continue to look for companies with longevity in mortgage. Additionally, industry consolidation is pushing some newcomers out of the market; therefore, the publication believes it is a good time for an established technology vendor with a proven track record, solid financials and a steady client base.

DocuSign continues to demonstrate leadership and market dominance in the electronic signature market, serving more than 30,000 customers and executing nearly 100 million signature events. As an example of DocuSign’s leadership, earlier this year DocuSign spearheaded an initiative for the FHA to clarify its position on electronic third-party signatures. On April 8, 2010, the FHA issued a mortgagee letter clarifying its policy, which is considered the first in what is expected to be a series of responses to this DocuSign initiative.

In June, DocuSign hosted the 2010 ESIGN Summit in San Francisco with a live keynote address from President Bill Clinton (via satellite). Gary Thomas, first vice president-elect of the National Association of REALTORS® presented, discussing how DocuSign enables REALTORS® and their clients to transact business from any place anytime. Other Industry visionaries and clients from mortgage and real estate sectors to technology and wealth management discussed the boundless opportunities to transact business more efficiently and environmentally friendly with DocuSign. To kick-off the Summit, DocuSign announced that it led a coalition in designating June 30 as National ESIGN Day to commemorate the 10-year anniversary of the signing of the Electronic Signatures in Global and National Commerce Act (ESIGN).

DocuSign provides the largest and fastest growing electronic signature platform available and enables mortgage professionals, small businesses and enterprise organizations to operate with greater agility, more efficiently, while enhancing profitability and compliance. DocuSign is the only award-winning electronic signature platform to securely manage and control the complete document signing process offering unlimited mobility and convenience.

Click for the full list of Mortgage Technology Top 50 Service Providers. Doug Wheeler, vice president of marketing for DocuSign, shares:

We are pleased to be recognized as a Top 50 Service Provider by Mortgage Technology. The DocuSign electronic signature service offers mortgage and real estate professionals a competitive advantage in a challenging market by providing the right tools at the right time to complete deals faster—from anywhere, anytime. We’re proud to be among this prestigious group of providers.

• contact management tools
• time management tools
• transaction management tools
• fully branded marketing tools
• document storage features

Wise Agent also offers 24 hour customer support – the only system in the real estate industry to do so. They also offer free live online training classes, great for you to learn how to link your Wise Agent account to your website, so you can capture and follow-up with new leads!

By seamlessly connecting technology, people and business practices, Wise Agent increases productivity, organization while making it easy for its members to give full service to their clients to build long term relationships. Wise Agent’s partnership with DocuSign brings electronic signature to Wise Agent’s members, allowing for a completely paperless transaction from listing to close and then stores all documents online for easy access.

Top 5 Reasons Wise Agent Chose DocuSign as its Electronic Signature Partner

5. In a world where being “green” matters, Wise Agent supports the idea of a paperless transaction.

4. The DocuSign user interface is simple and intuitive.

3. DocuSign is the trusted resource in the industry.

2. At Wise Agent, customer service is paramount. We always try to partner with companies that have similar ideals when it comes to customer support, and we feel DocuSign is one of those companies.

1. We really liked and believed in the people behind DocuSign, including An Bui, Mike Pressnall, and Dave Thorpe.

Want to learn more about Wise Agent and DocuSign? Click to learn how you can capture leads and nurture the relationship with Wise Agent before closing the deal with electronic signature from DocuSign!

DocuSign electronic signature service allows you to send forms for e-signature and e-sign forms. Using flexmls forms and DocuSign together, you can send forms using email to gather the legally binding electronic signatures you need.

If you’re already a DocuSign subscriber, you can connect your DocuSign account and your flexmls account. Sign in once, and each time you visit the DocuSign tab after, you can create new DocuSign envelopes for electronic signature.

If you aren’t yet a DocuSign subscriber, you can use the DocuSign tab to learn more about electronic signature from DocuSign, or to sign up.

Once you’re signed in, the DocuSign tab will allow you to select all forms in the current flexmls forms folder, the current form, or any combination of forms.

On the right hand side, you can assign people to the roles defined in the selected forms. The roles listed will be those included in any of the forms in the folder, so you can send the forms to the appropriate parties.

If you’ve used the auto-populate feature on the forms, the corresponding roles in the DocuSign tab will already be filled in.

Use the order box to designate the order in which the documents should be signed. Below, you can add additional recipients as signers, or you can send a carbon copy to a non-signing party.

Click “Create Envelope” to continue to the DocuSign page.

If you’ve previously created envelopes for the forms folder, the DocuSign tab will also have links to any related envelopes. Envelopes are listed by the creation date, along with status, and the subject of the DocuSign message relating to the envelope, included for your reference.

If you need to make changes to your DocuSign settings, click on the “DocuSign Settings” option under “forms” on your menu.

DocuSign is also integrated in other real estate forms, including zipForm 6, Realfast and others! DocuSign: fast, complete and trusted electronic signature for your needs.

From Ken…
When you do business electronically, you should anticipate the need to produce evidence that proves a given person signed a given electronic document on a given date. That means you should look at taking such steps as:

• Including authentication procedures to verify the identity of the signatory
• Maintaining evidence of the particular electronic document that was signed electronically
• Maintaining evidence of the electronic process that was followed in obtaining the electronic signature on the electronic document

In Prudential Insurance Company of America v Dukoff, the US District Court for the Eastern District of New York affirmed the importance of implementing clear electronic transaction procedures. Prudential initiated the action to void a life insurance policy issued on the life of the wife of the defendant and beneficiary on the basis of alleged misrepresentations in the application.

In response to Prudential’s complaint, defendant Dukoff and his wife’s estate filed a counterclaim for the full value of the policy, disputing the charge that it had been procured via fraud. The court was also called upon to consider a host of issues stemming directly from the fact that the application was submitted electronically via what the court called “a standard internet click-through process.”

The defendants argued that a box that was checked at the end of the electronic application process did not constitute a valid electronic signature under New York’s Electronic Signatures and Records Act (ESRA), and thus, Prudential was barred from challenging statements in the application to invalidate the contract.

While the court was unaware of any other court that had addressed the validity of electronic signatures for insurance documents under ESRA, in deference to holdings in advisory opinions by the New York Insurance Department, the court held that Prudential could challenge the statements if Prudential could reasonably identify the person who made them. The court then held that there was a triable issue of fact as to whether the final page of the application, which included personal information inputted by the applicant, sufficiently identified the person who signed the application.

The electronically filed application also raised evidentiary issues with regard to who actually submitted the application and when. According to the court, a computer printout produced by the plaintiff insurer shows the application was submitted on a date suggesting that Mrs. Dukoff did not submit the application. The court concluded, however, that the plaintiff insurer did not offer sufficient evidence to establish that this printout accurately reflects the date of submission.

Considerations When Choosing an Electronic Signature Vendor

Given that you may need to provide evidence that a given person signed a given electronic document on a given day, you should understand your electronic signature provider’s authentication services, the electronic signature capture process and subsequent documentation and the value of selecting a neutral third party provider.

Authentication

DocuSign provides an integrated authentication system that works with the electronic signature process to ensure any level of authentication can be provider and that the authentication provides positive identification of the person signing, NOT the equipment.

DocuSign’s authentication process is designed and architected with no single point of authentication failure. Authentication can be required each time a signer reviews and signs a document, if requested. One authentication session for a document from company “A” does not mean company “B” must rely on that authentication, as is the case with PKI digital certificates.

DocuSign’s Authentication Systems

1. Email Authentication: validates a person’s email address and access to that email address.
2. Access Code Authentication: validates a person’s ability to provide a shared secret or passphrase.
3. ID Check: validates a person’s knowledge based on a knowledge-based authentication process provided by RSA.
4. OFAC Checking: validates whether a person’s name is on the Specially Designated Nationals List administered by the Office of Foreign Assets Control.
5. Age Verification: validates a person’s age is correct as entered.
6. Federated Authentication: accepts and records authentication by another system when integrated with DocuSign. This can be any form.
7. Two Factor Biometric Authentication: validates a person’s phone number and access to that phone number. This authentication process also records a voiceprint of the signer.

Additionally, DocuSign’s authentication system supports a workflow of authentication for integrated customers, enabling decision-making during the authentication process. DocuSign also collects the IP addresses of all users and time stamps all activity into the encrypted, tamper-proof audit trail along with all the authentication results.

The DocuSign Electronic Signing Process

Visible Elements of a DocuSign Electronic Signature:

1. Script Signature Name: The script-written name generated in the DocuSign system by the document signer has legal significance, as the signer is required to agree that the script signature will have the same legal effect as his or her handwritten signature.
2. “DocuSigned By:” Box: Every electronic signature is bordered by a signature block that contains a portion of the signer’s Globally Unique Identifier (GUID) A GUID is a 128-bit number in hexadecimal form, such as { 3F2504E0-4F89-11D3-9A0C-0305E82C3301}, which is created for the signer by DocuSign. This partially visible GUID conceals the full ID.

Invisible Elements of a DocuSign electronic signature:

1. GUID: Each person in the DocuSign system has a unique GUID, a pseudo-random number used in software applications. Each GUID is “mathematically guaranteed” to be unique, based on the principle that the total number of unique keys is so large that the possibility of the same number being generated twice is virtually zero. The full GUID is associated with a user upon authentication and electronic signature creation. The signer – electronic signature association is managed by DocuSign, encrypted and hashed to ensure that it cannot be modified. The hashing process entails the application of an algorithm to the GUID to create a digital representation of the GUID, resulting in a “hash value.” Any change in the underlying document would produce a different hash value, which would be evidence of tampering.
2. Hash of Signature: The entire signature element is stored in the DocuSign system in secure (hashed) format.
3. Signer Certificate: The data structure of the DocuSign system links a signer’s attributes, GUID and signature stamp to ensure that only that particular person ever has access to use that particular electronic signature.

The visible and invisible elements work together to link the person, document and electronic signature in an auditable system. Copying or duplicating only the visible elements of the electronic signature does not compromise the signer’s identity because only the invisible elements are solely under the electronic signature owner’s control.

Due to DocuSign’s strict adherence to the authentication and electronic signature process, which includes the signer’s involvement in creating and placing his or her electronic signature in specified locations on documents, DocuSign enables the most familiar and enforceable process for signers. For more information, take a look at the Electronic Signature Vendor Checklist.

You can set up fields to activate Conditional Fields that show additional information to the signer or request additional information from the signer. You can even activate multiple Conditional Fields that show information and ask for signer input. Now that you’ve seen how Conditional Fields work, we’ll show you how to set them up in your electronic signature envelope.

The process for enabling Conditional Fields is similar to the normal process for creating an envelope and adding fields. Create an envelope, add documents, recipients, and message information as you would normally. Add the signature tabs, initial tabs and other secure fields to your document. To enable a field as a Conditional Field, open the properties dialogue box and enter the label information. Select the field that activates this Conditional Field. In this case, we want to add a phone number field that the signer selects the enhanced support purchases checkbox. In the parent tab lists, select enhanced support checkbox and the parent value of check. This sets up the phone number field as a Conditional Field.

If you are using a drop down list to activate the Conditional Field, you go through the same process as opening the properties dialogue and selecting the parent tab and parent value. The value list shows the items in the dropdown list. One field can activate multiple Conditional Fields. This initial tab is activated by the same dropdown list as the warning field above.

With conditional fields you can create dynamic documents that allow customers to make choices that modify content and signing locations, helping to optimize the signing experience!

We’re excited to share that ADVANTIS Global Services, a leading IT staffing and technology consulting firm for Fortune 500 companies and mid-market, has selected electronic signature service to complete its contracting process. ADVANTIS uses DocuSign to quickly and easily finalize client recruiting contracts and consultant application packages online—thereby avoiding the hassle of printing, signing and faxing or mailing bulky, multi-page documents. ADVANTIS will migrate to a paperless process by deploying the DocuSign electronic signature service at all seven regional locations.

Jeff Taylor, chief operating officer of ADVANTIS Global Services, shares the moment they knew the needed to add electronic signature in their process:

When one of our recruiting channels used DocuSign to finalize a contract with us, a light bulb went off—we have to be doing this. As one of the major IT staffing and consulting companies in the high tech corridor, we process a large volume of candidate applications and client contracts so DocuSign just made sense. We needed the latest technology to support and accelerate processes throughout our various offices across the country and the solution had to accommodate the unique needs of each office. We found DocuSign to be the market leader and the best electronic signature solution available to meet our needs.

According to Taylor, ADVANTIS wanted an electronic signature solution that was fast, flexible and easy for its growing staff, remote clients and candidates. DocuSign proved easy to use with the ability to streamline workflows while offering the document customization necessary to better brand and support each regional office.

DocuSign enables ADVANTIS to manage large volumes of contracts by seamlessly connecting to ADVANTIS’ customer relationship management (CRM) tool. PDFs created in the CRM can be quickly prepared for e-signing through the DocuSign Console. The recipient receives an email notification indicating a document is ready for signature, adopts an electronic signature and in minutes is guided through the e-sign process. Once completed, an email notification is sent to all parties with a link to the final executed document. ADVANTIS can then save the signed digital document back into its CRM or archive within DocuSign.

Steve King, president and CEO of DocuSign, shares his thoughts on ADVANTIS’ use of technology to achieve business process efficiencies:

ADVANTIS Global Services successfully leverages technology to accelerate business in a highly competitive environment. DocuSign is pleased to be working with ADVANTIS to further streamline their business processes, increase efficiencies and enhance their service model for clients and candidates alike.

Click for more information on how DocuSign electronic signature can accelerate recruiting and staffing processes!

Doug Glagola, vice president at MeridianLink, explains how DocuSign extends MeridianLink’s platform, enabling the entire process to be conducted in the cloud:

With the success financial institutions are experiencing with their investment in online lending and account opening capabilities and the millions of loans and accounts now being originated online, it seemed only natural to also finalize and close the transaction online. With DocuSign, the entire process can be conducted seamlessly in the cloud—eliminating paper, hassles and wasted time. DocuSign is the final mile in completing the loan process.

MeridianLink’s platform, an online application, instantly generates pre-qualified loan decisions for all types of consumer loans and generates new accounts for all types of deposit accounts. Commercial loan origination and deposit accounts are also available. MeridianLink’s platform fully integrates loan origination and account opening, core processing and internal banking software in almost any configuration to produce a fully paperless lending and account opening program for any financial institution. Now with the integration of DocuSign electronic signature services within the MeridianLink platform, online transactions can be originated, approved, signed and funded without interruption. DocuSign finalizes the process by offering financial institutions and borrowers the convenience to electronically sign and complete the final mile of the process all within the MeridianLink workflow.

Just as the MeridianLink platform has transformed how loans and new deposit accounts are originated and processed, electronic signatures are further transforming these transactions so they are conducted entirely in the cloud. By moving loan and deposit account document signing into the cloud, financial institutions can leverage the time and cost efficiencies of cloud computing while gaining real-time insight into the signing process. And, through the integration of the DocuSign electronic signature platform, MeridianLink financial institution customers have complete real-time visibility into the entire process.

Dave Thorpe, market director at DocuSign, explains what integrating the DocuSign electronic signature solution into the MeridianLink platform means for banks and credit unions:

More than 450 banks and credit unions have currently deployed the MeridianLink platform. With the integration of the DocuSign electronic signature service, we anticipate an accelerated adoption of the MeridianLink automated loan and account opening solution. DocuSign is excited to align with MeridianLink and we look forward to collaborating with them to further extend the power of the DocuSign electronic signature platform and the MeridianLink’s platform in streamlining the loan and account opening process, reducing costs and ensuring the continued success of our joint customers.