I have a lender who places truth in lending redisclosure documents in the banks drive thru for clients to pick up. Concerning the Reg Z redisclosure waiting requirements, I say this is not face-to-face delivery and must wait 6 (3+3) days to close. My lender disagrees, but can't find anything out there that specifies what constitutes face-to-face. Any help?

Thanks!

Although a little unorthodox I would agree with the loan officer in this incident. The reg doesn't say the disclosure has to be delivered "face to face" it says "in person". And I would argue the bank employee is providing the disclosure in person through the drive up facility.

Am I safe in assuming that the documents are delivered via the drive thru when the clients arrive to pick them up, not that the lender puts them there earlier and tells the client the documents will be there, but anyone could grab them? (Perhaps a crazy question but I have seen bank employees do crazy things!).

If the documents are being handed to the customer via the drive through drawer/tube (essentially left in the branch for pickup), I agree with Dan that this is an in person delivery.

I thought about addressing this but assumed they were considered delivered only when the client picked up the disclosures, but we all know what assuming does.

So to elaborate on Ms Kaybee's comment the redisclosure would not be considered delivered until the client picks up the disclosures. And the client(s) only, not a representative, relative, etc.

Therefore I would advise some sort of documentation as to the date and time the client picked up the disclosures.

Also I just happen to remember. All persons who have the right to rescind must receive a copy of the disclosure, so you need to address that issue also.

Those are good points, Dan. This kind of thing can get tricky and is why I was always mean and didn't let lenders make up their own new ways to do things. You just never know what might actually occur when you can't control the situation.