Sheryl Silberstein of Maddin Hauser Roth & Heller Law Firm shared important intelligence information about the possible fuzzy legal guard rails of using e-signatures to close loans. Representing a lender, she monitored the communications between her client and a financial consultant for the out-of-town borrower who suggested an e-signature. Silberstein explains while a purchase agreement by e-signature may be sufficient, the notary rules for a loan closure are burdensome and the guidelines for e-signatures haven’t truly been established. She advised, “Until we get better rules, please do not encourage this.”

Silberstein’s comments were enthusiastically backed up by member Phil Seaver of ATA National Title who added that the registrar of deeds hasn’t agreed to record e-signatures and in some cases they don’t have the ability to do so.