4506-T E-Signing Adoption Heats Up

*4506-T E-Signing Adoption Heats Up*
**Acceptance Continues**

***Here at PROGRESS in Lending we believe that the Internal Revenue Service’s recent announcement of the acceptance of electronic signatures on the 4506T beginning January 7th, 2013 is a monumental achievement as the mortgage industry continues to strive to become a completely paperless industry. We’ve told you about how Equifax, eSignSystems and eLynx are ready to go and can support IRS compliant e-signed 4506-Ts today. A consequence of these three companies being ready is that in many cases this means that their partners are ready by virtue of their association with these vendors. For example, Document Express, Inc., a document preparation and compliance services for the mortgage industry that partners with eLynx is also prepared to enable its lender clients to e-sign the 4506-T. So, here’s what all this means for the mortgage industry:

****“Until now, errors on the form and the process of getting the 4506T signed added several days to the disclosure process,” said Andy Crisenbery, Senior Vice President of Business Operations at eLynx.  “Using eSignature technology, both the data quality issues and the time delays are eliminated.”

****“Now that lenders will be able to capture the information on the 4506T electronically, this will streamline the lender’s procedures and accelerate the processing time along with reducing costs, increasing accuracy and providing a complete audit trail,” said Lori Johnson, President of Document Express.

****Document Express and eLynx forged a partnership in 2011 to offer electronic delivery, signature, and print-and-mail fulfillment services using the eLynx Expediteplatform for DX Initial Disclosure packages.  Document Express services are fully integrated with the eLynx platform. The extension of services allows Document Express customers to prepare loan documents and then deliver those documents electronically to borrowers and closing agents, including electronic consent and signatures, without a break in their loan-processing workflow. To ensure compliance, documents that cannot be delivered electronically are automatically sent to recipients using one of eLynx’s two secure print-and-mail centers.

****eLynx’s eSignature service satisfies all requirements from the IRS from initial authentication and consent, all the way through to maintaining a tamper proof seal and audit trail of the transaction.  eLynx can provide an electronically signed 4506T with all supporting data to any IVES participant.

****“Our partnership with Document Express enables lenders to generate all the documents in a disclosure package, deliver them to the consumer, and get them electronically signed in a matter of minutes, not days,” Crisenbery said.  “Income verification through the 4506T can begin as soon as the documents are electronically signed by the borrower, ensuring that consumers get feedback on loan decisions quickly.”