Green  (paperless or semi-paperless transactions seem to be the future...although some obstacles will need to be overcome as is the case with all new technology).  E-signings for real estate closings seem to be a direction in which the industry is moving. Our firm received its first request for one this week. For reasons that I am not at liberty to disclose we declined the offer. However, we will be entertaining it in the future...provided the appropriate proprieties are observed..

There seem to be a number of variations with these closings. In some cases the borrower is asked to sign a power of attorney appointing a complete stranger on the lender's side of the transaction to sign the borrower's name to a note, mortgage, deed and other sensitive documents...something I would have difficulty recommending to anybody. I have discussed the concept with a number of borrowers over the past year. So far the idea has been received with about as much enthusiasm as a turd in a punch bowl.  Another more acceptable variation involves the use of a combined e-signing and a wet signing. The deed,note, mortgage, notices of right to cancel, notarized documents and other sensitive documents are still handled by email, but the remaining documents are signed on line. The wet signed documents are treated in the same manner as always. The e-signed documents are signed by the borrower's clicking on the "I agree" button on the image of each document on the computer screen. I am sure that other viable alternatives will eventually surface.

Some of the draw backs at present from the signing agents' position are the cost involved in the acquisition of mobile computer hardware and wireless modem/air card. However, the lap top computer is a one time expense, and the on going monthly cost of the modem/air card can be offset to some degree with the savings on paper and printing toner resulting from smaller doc packages...provided there is sufficient volume of orders. From the borrowers' position there is also the matter of adequate security to protect sensitive financial and social security number information. There is also an issue as to whether an e-signing is possible in a cell phone dead area.

There is also the concern of elderly borrowers who do not feel comfortable with paperless transactions. This is especially true with reverse mortgages. I remember doing a closing in January with a couple in their 80's. You have to be very patient with them. They had many questions about the transaction which needed to be completely explained. Consequently, there were numerous calls during the closing to the loan officer. A closing that would normally take 45  minutes took 3 hours. Some may also have physical infirmaties which makes their signature difficult to sign. I have had some closings in which the signatures were completely illegible, but still legal (Any mark made with the intent to authenticate a document is a legal signature..possibly an X or a pictograph as exemplified in "Moby Dick" when Quig Quig signed on as a harpooneer by drawing the picture of a whale). Some may find hitting the "I agree" button simpler than signing a wet signature.

There is also the matter of the signing agents fees. As with the abstractors the VM's are trying to negotiate the fees as low as possible arguing that the e-signings will be much simpler than traditional wet signings. So far the feed back that I have received has been  that just the opposite is true.I have to commend the signing agents in their resistance to the VM's.