Press Release: Faster, more accurate processing of 4506-T forms will save lenders time and paper while verifying borrower income.
TORRANCE, CA — DocMagic, Inc., a leading provider of fully-compliant, loan document preparation and delivery solutions for the mortgage industry, announced today it is fully prepared to provide electronic signatures under the IRS Income Verification Express Service, which will allow lenders in the future to use e-signatures on official requests for a borrower's tax transcripts and thus streamline the mortgage origination process.
According to the Mortgage Bankers Association, the Federal Housing Administration and the U.S. Internal Revenue Service will start allowing electronic signatures on the IRS 4506-T tax transcript request forms and on FHA loan documents sometime this year. The development is seen as an important step in streamlining loan approvals, as the current process of verifying a borrower’s income and financial profile can take days or even weeks. DocMagic has been working with some of the nation's largest lenders, credit unions and service providers to prepare for the adoption of this milestone.
DocMagic currently enables the electronic signing of loan documents and disclosures through its eSign solution. A vital part of eSign is DocMagic’s proprietary ClickSign technology, which digitally seals a borrower's signature on key loan documents. DocMagic's eSign platform, available to anyone who wants to create e-signatures at no cost, is fully compliant with both the eSIGN Act and the federal Uniform Electronic Transactions Act (UETA).
“Since we made our eSign technology available at no cost last year, the industry response has been simply incredible,” said Dominic Iannitti, president and CEO of DocMagic. “With electronic signatures, our clients and partners can increase the speed and efficiency of their operations, particularly on non-disclosure agreements, pre-disclosures and legal contracts. When e-signatures are approved for 4506-T forms, we’ll be ready to go – and our clients will see even greater savings in time and paper.”
Set-up and use of DocMagic's eSign solution is quick and easy. An application programming interface (API) is available that integrates eSign with all major loan origination systems.
About DocMagic, Inc.
Founded in 1988 and headquartered in Torrance, Calif., DocMagic, Inc. develops software, processes and web-based systems for the production and delivery of compliant loan document packages. DocMagic guarantees and warrants that all agency forms are up to date and in compliance with GSE requirements. The company’s compliance experts and in-house legal staff constantly monitor legal and regulatory changes at both the federal and state levels to ensure accuracy. For more information on DocMagic, visit www.docmagic.com.