It is my understanding that we should be obtaining E-sign authorization from our applicant if we want to send the valuation or appraisal to the applicant by email. In looking at this it appears that the customer must go on-line and confirm this by agreeing to that process on the E-sign disclosure that is on-line. Is there a way to do this by a written disclosure or must it be acknowledged electronically online?

I am trying to put together a "welcome" packet that incorporates all the new regs of what the customer needs to provide, sign, acknowledge, etc. This is one item that I am still trying to determine what I must do to follow the rule.

The below explanation if from a helpful Fed article. The customer has to show that they can receive the document in the electronic manner in which you mean to send it.

Step 5 - Affirmatively Consent
To ensure a consumer can communicate electronically with the financial institution to which consent has been provided, the E-Sign Act requires that the consumer provide consent electronically "in a manner that reasonably demonstrates that the consumer can access information in the electronic form that will be used to provide the information that is the subject of the consent."

http://www.philadelphiafed.org/bank-reso...arter/q4_02.cfm

Thank you...this is very helpful and confirms my understanding of this...was hoping for the ability to have this in writing vs online....that just creates another layer of "stuff"

eSign is new to our bank but we are exploring. Assuming we are e-sign compliant and the customer has gone through the authorization and consent process, when is a disclosure considered "delivered" using electronic means? If we have no way to verify the consumer's receipt of the actual disclosure do we have to go by the standard "3-days after mailing or delivering" as though the disclosure was snail-mailed? Another question, do most eSign services have a way to verify consumer's receipt of the actual disclosures not just the original consent to receive?

Without demonstrating receipt, the delivered date will depend on the regulation for the disclosure. e.g. statements are considered devliered upon sending and TIL forms are considered delivered 3 days after mailing.

As for demonstrating receipt after meeting E-SIGN requirements:
If you're using a push method of delivery, i.e. encrypted file in an email, then you'll need some type of documentation to show the customer received the email; could be read receipt or reply email stating they received it.
If you're using a pull method, e.g. secure website customer logs into to download document, then there will be a record of the customer's download showing they recieved it.

Thanks, that helps!

I'd like to be able to deliver the copy of appraisal electronically. It would have to be done using the push method. Would it be acceptable if we emailed the disclosure and required them to respond back with a code embedded in the disclosure?

*bump*

Carolina Blue wrote:


Can you tell me where you found this or what it is based on?

Thanks!

I don't know that it matters, as I do not believe that it is correct.

Can you elaborate a little more on what part or why Carolina's guidance is not correct?

Sorry, just noticed there's a simultaneous debate going on in a similar thread on this subject.

You don't need to document that the customer read the email, I believe you only need to document that you sent the email with the disclosures attached. I print the sent email and place it in the customers file.