I have to go through this with almost every client and I honestly still don’t have a good answer as to why docs have to be signed exactly the way the name reads on the docs as opposed to signing with their signature as it appears on their DL. The only exception, I understand is if the signature is unreadable. I ask them if they are signing as docs have their name printed and if they say yes-- I can allow them to continue to sign that way. I’ve asked title companies and lenders and it seems they all have conflicting answers. This is a confusing rule with some gray area, can anyone clarify?
It might interesting to think about why documents don’t have to be signed with the same characters or style as the driver license. By characters, I mean the exact letters of the alphabet and punctuation marks the signature is meant to represent, regardless of whether the signature is easy, hard, or impossible to read. By style, I mean how the signature looks: neat, messy, lots of loops, mostly straight lines, etc.
Each state has a bunch of rules about how to prove to the DMV that a certain name belongs to the driver, and what characters can appear in the name. Depending on when the license was issued and the technology a state uses, there may be a limit on how many characters are allowed, whether accented letters like Ä are allowed, whether dashes and apostrophes are allowed, etc.
The style of the signature on the license may be affected by using an electronic pen, which often just don’t write the same way as an ink pen.
I’ve never seen a rule that says the name or signature from the license has to be used in any other sphere of activity, except that sometimes there’s a rule that the name you use for some activities must match the name on the ID you presented when you registered to begin the activity. But you always have the option to prove your identity in a variety of ways, such as passport, military ID, sometimes birth certificate, etc. When I filed my oath of office to become a notary, I was IDed by the personal knowledge of the town clerk who administered my solemn affirmation.
Also consider a person who has injured her writing hand, and has to sign with her non-dominant hand. Does that mean she can’t sell her house the day after the injury? Of course not.
Like I tell signers - the people with the money get to make the rules!
If a company is lending you thousands / hundreds of thousands of dollars or more and they require to sign your name that way either sign it that way or don’t get the loan, it’s really that simple. A loan is not a right, it’s a privilege, and if they don’t want to sign that way all they have to do is bring a cashier’s check for the thousands / hundreds of thousands that they were getting from the loan! No one really cares how you sign on a cash deal! 
Another way I think about it is if you win the Lottery - MILLIONS of dollars - and they say to get this money you have to sign your name a particular way are you going to say no just because it’s different than the way you like to sign? No! You’re going to sign however they like and get your millions! 
Once I give these examples people may still grumble a bit, but they usually go ahead and sign as their name is on the documents!
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Both very good points, thank you. I guess I’m just wondering, as the signer does, why wouldn’t the lender prefer a signature, rather than a way that is unnatural for a borrower to sign? Maybe it’s not that important, but I’m just curious if anyone knows.
I am glad i got your lecture on signers signing their name. Its a struggle, they will say that’s how i sign it on my drivers license. I tell them that I have to at least be able to understand the first letter of each part of their name. I tell them the reason I make them do it is that, I let a lady scribble scrabble and they sent me back out to redo the package. I dont like to make free runs. The signers don’t like that you tell them how to sign their name. I make them anyway even if they have to practice on a piece of paper and most of the time they do.
Have a Blessed Day!!
As far as I’m concerned, signatures that are illegible scribbles are acceptable unless the entity that hired me requests legible signatures. I’ve never had a hiring entity ask for that. If one does, I will ask them to provide an explanation that I will pass along to the signers.
I don’t know what lecture debracoxnsa is referring to, but I’m not going to change my procedures based on something I read in an internet forum.
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Ok!! There arer 3 things so for sure and life that’s, Taxes, Change and Death. You do it your way and I will require it my way. Change is the one you’re missing. I experience that scribble and had to go back and get them to write there name. But if you haven’t experience that yet. So be it!!
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