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#1824337 - 06/17/13 10:26 PM E-Sign - Who is doing their own process?
In the middle of it Offline
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In the middle of it
Joined: Oct 2000
Posts: 276
Central US
We have e-sign processes in place as part of our online account opening and e-statement delivery products. They were part of the products we selected. But our loan document vendors - even the mortgage platform that allows e-mailing of documents - do not include a process.

I've read some of the posts here. I understand what is required (the affirmative consent - probably by sending a test pdf document) but wondered who has experience setting this up as part of the loan application and servicing stages and how you incorporate it in your process. We're kind of struggling with the work flow and how this can all be tracked.

Our originators currently control sending documents to their applicants and - the first issue - is that their platform allows them to do that without any documented consent. Any re-disclosures and subsequent activity and servicing are handled centrally, so incorporating a consent process before a message is sent seems a little bit easier to incorporate there.

I suppose the major question is what controls do you use to ensure consent is received prior to covered disclosures being sent to a customer/applicant? Thanks in advance for any suggestions on how to approach this.

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eBanking / Technology
#1824362 - 06/18/13 11:51 AM Re: E-Sign - Who is doing their own process? In the middle of it
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 9,982
Toano, VA
Originally Posted By: In the middle of it
Our originators currently control sending documents to their applicants...their platform allows them to do that without any documented consent.
If those documents include federal disclosures that must be delivered "in writing", then you have a systemic problem that should be corrected yesterday. Manual processes are never the best choice, but in the short run, that may be all you can do.

Lenders usually have the advantage of face-to-face contact with their customers at the outset of a loan origination. That's the time & place to slip in the "paper or plastic" question and get the customer's consent. ESIGN doesn't have rigid rules about the process, so you can cover the necessary "how-it-works" explanation in conversation. Develop a script or at least a series of talking points for the lenders. After they give the customer the standard explanation (including the need for a "test drive") they could get the customer to sign a paper consent form if that fits in with your overall process. Note that the paper form is symbolic--nothing is official until the customer gives consent or confirms consent electronically (in case you used a paper form during the interview).

Assuming you're sending PDF attachments to email messages, you need to develop a simple pdf form for the test drive. You're free to include anything, but it's a good idea to list all of the ESIGN preconsent disclosures--even if you already covered them during the interview. The purpose of this test document is two-fold. First, it will demonstrate the customer's ability to receive, open, and read the content of e-documents of the type your lenders will use for subsequent messages--including federal disclosure forms. Second, the document can include a two-click consent mechanism that satisfies ESIGN.

To turn the test document into an action item, add a link to a stand-alone page on your website. When the customer clicks this link in the test pdf document, his/her browser opens and up pops your "E-delivery Consent" page. This page contains a simple form that says something like "Enter your email address here [(data entry field)] and click [this button] to confirm your consent to the use of electronic documents during the processing of your loan." That's it for the customer. Behind the scenes, when the customer clicks the consent button, that triggers a program that can do anything you want. At a minimum, it should add the customer's email address to your file listing customers who have opted in for e-delivery of loan processing documents. It's also good practice to save a timestamp and log the customer's IP address. If possible, you'll want to make the program generate an email message or other notification to the lender. That message will serve as the green light to proceed with e-delivery. As a courtesy, you might want to CC the borrower.
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