Document Updates: VA Announcement

Following a routine audit of VA forms, Docutech revisited the issue of the conflicting information from the VA concerning the use of electronic signatures on official VA forms.

In August of 2013, the VA issued Circular 26-13-13, the purpose of which was to clarify that electronic signatures are acceptable for use in conjunction with the VA Home Loan program.

The circular went on to state that while Lenders were not required to use electronic signatures, if they chose to, they had to comply with the E-sign Act. The circular’s original rescission date of January 1, 2015, was extended by 26-13-13 Changes 1 and 2 until January 1, 2019. No more Changes to 26-13-13 have been issued further extending the rescission date, and no other Circulars concerning electronic signatures have been issued by the VA.

Despite the information provided in the Circular, a number of official VA forms still contain the italicized parenthetical, “(Sign in Ink)”, in signature boxes. This conflict led us to reach out directly to the VA in hopes of addressing this inconsistency. Specifically, we asked:

1. 1. Are electronic signatures allowed on official VA forms that contain, even if they contain “(Sign in Ink)”?
   2. If so, can we remove “(Sign in Ink)” from the form(s) to avoid confusing lenders and/or veteran borrowers?

After a series of back-and-forth emails, the VA provided the following guidance:

1. 1. Digital signatures can be accepted for the VA Home Loan Guaranty program as an original signature or wet signature as defined by the Electronic Signatures in Global and National Commerce Act, commonly referred to as the E-sign Act;
   2. VA Forms should not be altered, and;
   3. The VA will work to clarify information on completion of the form.

If you have any questions or concerns about this issue, please contact Client Support at 1.800.497.3584.

DR-138339

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.