That’s One Small Step for e-Kind

Quicken implements e-signatures

October 3, 2002

By CHRISTY ROBINSON

The process began last week and is powered by ApproveIt Web Server, a zero-download solution developed by Silanis Technology Inc.

Customers applying for loans on the company’s Web site “click to sign” within their Web browser to give their electronic John Hancock. ApproveIt Web Server then works behind the scenes to secure the transaction and provide a legally enforceable process, the announcement said.

A federal law made e-signatures binding in mid-2001 and has eliminated reams of paper from the lending process. Since then, borrowers have mostly been installing software to execute the e-signature process, saving time and effort when applying. According to the company’s announcement, Quicken’s new browser-click e-signature is the first of its kind that is secure and legally enforceable.

“We are totally focused on making the mortgage process simpler for the consumer,”  said Bill Emerson, chief executive officer of Quicken. “One of our key requirements was a solution that didn’t involve downloads; it had to be easy for the average consumer to use.”

Laura Armstrong, Mortgage Bankers Association of America spokeswoman, said the new e-signature adds to the convenience of online lending, but isn’t overly cutting-edge.

“It’s just more e-assistance that’s out there,” she said.

Officials from some competing companies do not see the value in such a system until it can be applied to the entire loan process.

Chris Edwards, consumer Web site manager at IndyMac Bank, said IndyMac doesn’t have immediate plans to implement a similar system, but is looking into different solutions.

“Eventually this industry will be all electronic. [Quicken’s new process] is a good first step, but not a life-changer right now,” he said. He added that until that time, customers still must ultimately sign the final documents in person with officials present.

“We just don’t see a huge value proposition in that right now.”

Mortgage brokers and closing services agents dealing with Countrywide Home Loans, Inc. have the ability to open and approve packages electronically without using e-signature technology, said Richard Jones, chief technology officer for Countrywide. He did not say if e-signatures similar to Quicken’s are in the company’s future, however.

“The real issue with electronic signature comes as it relates to closing the loan,” he said. “The customer still must appear before the notary and get the notary’s acceptance. The Quicken announcement does not change or remove these requirements.”