4506-T E-Signature Use a Little Slower Than Expected
Many clamored for the authorization of electronic signatures for the 4506-T as it completes the set of key predisclosures in the origination process that can be e-signed. But it is moving a little bit more slowly than anticipated, some say.
"I don't see it moving as fast as I expected it to," Mark Mackey, executive vice president of industry vendor IDS, told this publication, adding that he nevertheless believes it will "soon become the norm."
Mackey said he expects there will be a bit of a gearing-up process that may take a couple months, as there has been for some other new functionality available to the market in the past.
Part of the delay on some players' part may be an accompanying requirement in which 100% or at least 125 files must be audited monthly, submitted annually and stored for a period of time.
Mackey said the requirement "is not difficult" for lenders to fulfill and even with it e-signing the form has compelling efficiencies and other advantages, but in this way the e-signed 4506-T does vary from other e-signed predisclosures.
"It's slightly different, and anything that's different takes more time, even if it is a simple process," he said. "In all reality, the lender doesn't have to do anything extra [but] in their mind there are extra steps on the backend."
Despite this, he said his company will take care of the audit requirement for users at no additional cost. "We don't charge anything extra, it's like any other [e-signed] form," said Mackey.
Users have had an option on his company's technology that allows them to simply print that particular form and like other vendors he said the e-signature functionality is relatively easy to turn if users convert to it, he said.
Mackey said he still believes more will convert to e-signatures, but that they may be making sure they have vetted the additional requirements involved in e-signing the form before they do.
"The 4506-T is one of the last forms to be e-signed and it puts us pretty much where we want to be," he said. "It will be the norm before we know it."