Electronic Signature

An electronic signature records a borrower's intent to sign an eligible mortgage document through an approved digital process.

An electronic signature is an electronic symbol, action, or process used with the intent to sign an eligible mortgage document. It may be a typed name, click, drawn signature, or another authenticated action inside an approved signing system.

Why It Matters

Electronic signatures can speed delivery, reduce paper errors, and let borrowers review eligible documents before an appointment. The system usually records identity checks, timestamps, consent, document versions, and an audit trail rather than merely placing an image on a page.

Electronic delivery generally begins with consent to receive records electronically and confirmation that the borrower can access them. A borrower who cannot open, retain, or print the records should address that before relying on the portal.

Electronic signing does not mean every mortgage document is eligible. Lender, investor, title, state, county-recording, and notarization rules can require a Wet Signature for part of the package.

Where It Appears in the Borrower Process

Borrowers may e-sign application disclosures, authorizations, revised forms, and eligible closing documents. Near Closing, the settlement team identifies which documents can be completed remotely and which require notarization or physical originals.

In an eMortgage, the promissory note is an Electronic Note (eNote) created, signed, transferred, and stored electronically. E-signing an ordinary disclosure does not turn the loan into an eMortgage.

Safe E-Signing Checklist

  • Enter the portal through a verified lender or settlement-provider channel.
  • Confirm the document title, property, loan amount, and version before signing.
  • Read the document rather than clicking rapidly through required fields.
  • Download or retain the completed signed record and audit certificate when provided.
  • Stop if an unexpected email changes the portal, payment instructions, or closing terms.
  • Ask which documents still require ink signatures, witnesses, or notarization.

Electronic Signature Compared with Nearby Terms

TermMain ideaBorrower-facing difference
Electronic signatureDigital signing method for eligible documentsThe borrower signs through an approved electronic process
Wet SignatureHandwritten ink signature on paperThe borrower signs a physical document
Hybrid ClosingMixed electronic and in-person closing formatSome documents are electronic and others remain paper or notarized
Remote Online NotarizationOnline notarization processNotarization is completed through a separate approved digital workflow
SigningFinal execution stepThe signing step may include electronic, paper, hybrid, or remote elements

Practical Example

A borrower consents to electronic records, opens the lender’s secure portal, and e-signs several disclosures. At the closing appointment, the borrower signs the paper note and notarized security instrument in ink. The transaction is a Hybrid Closing, not a fully electronic mortgage.

How It Differs From Nearby Terms

Electronic signature differs from Wet Signature because it is associated with an electronic record through a digital process rather than written on a physical original.

It differs from Remote Online Notarization because notarization adds identity, presence, and notarial requirements. Not every electronic signature is notarized.

It also differs from Hybrid Closing. A hybrid closing is the broader mixed-format closing arrangement, while electronic signature describes one method used for eligible documents.

It also differs from Electronic Note (eNote). Electronic signature is the method used to sign; an electronic note is the digital mortgage note being signed.

Knowledge Check

  1. Does typing a name into any emailed document create an approved mortgage e-signature? Not necessarily. The process must satisfy the parties’ legal, system, identity, and document requirements.
  2. Does e-signing disclosures make the note an eNote? No. An eNote is a specific electronic promissory note created and managed within an eMortgage process.
  3. Why should borrowers retain completed electronic records? They need access to the actual signed terms and evidence of execution after the portal closes.
Revised on Sunday, August 30, 2026