An effective date for the Internal Revenue Service’s acceptance of electronic signatures on the 4506-T forms that used to check the integrity of borrowers’ submitted tax information has been set for Jan. 7.
The move finally closes a missing link in the ability to e-sign origination documents.
“People have wanted it,” Ken Moyle, chief legal officer at industry vendor DocuSign, told this publication. “It’s the only paper signature left in the mortgage origination process.”
The lack of IRS e-signature acceptance for the 4506-T, he said, “has been the common lament of people who put these deals together.”
Moyle, who also is the chair of the Electronic Signature and Records Association, said over the past several years gradually the moves needed to sign various origination forms have fallen into place.
“The IRS has been the last one to say, ‘We will accept electronic signatures on this very important form,’” he said, noting that the process took some time because the document is a key one when it comes to fraud prevention.
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Electronic Signature & Records Association (ESRA) 