Currently the only way we are able to show compliance with the E-SIGN Act is on the retail side of banking through the customers use in their online banking account. Now the lenders are asking to be able to electronically deliver their disclosures, etc.

Short of using a third-party vendor, how are other banks complying with the E-SIGN Act by documenting the borrower has the ability to open these disclosures in a printable format?

I'd be interested in this as well. Through the use of Internet Banking, we use E-SIGN for an existing customer to opt-into receiving their statements electronically.

However, short of investing in the on-line account opening feature from our vendor, we have no easy solution for lenders (or new accounts personnel) to deliver documents to a prospective customer. If there are other 3rd parties who provide an E-SIGN capability for such instances, I'd like to hear about it.

I would like some information on this also. We do not have customers sign anything electronically for accounts – we do accept electronic acceptance for Internet Banking / Bill Pay – if we allow for customers to receive other disclosures (i.e. the appraisal under the new reg) via secure email – do we need an E-Sign Policy?

Policies are optional, but ESIGN's informed, demonstrable, electronic consent is a necessary step when four conditions are true:
1. the bank wants to deliver "information" electronically,
2. the "information" will be delivered to consumers,
3. the "information" consists of (or includes) disclosures required by federal consumer protection laws and regulations (such as RESPA, Reg E, Reg Z, etc.), and
4. the federal law or regulation requiring the disclosures states that they must be delivered "in writing" (or comparable language.)

This opens up another question -- I have heard of banks sending their EOY 1099's electronically to customers who have provided an email address and to all e-Banking customers. My bank is interested in doing the same. I'm not sure whether that is permissable, but it doesn't appear that #3 condition above is present. Any opinions?

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The light at the end of the tunnel ceases to shine.

It's the same analysis. Look at the rules (IRS regs, in this case) that govern what you want to e-deliver. If those rules say the item must be delivered "in writing" and impose penalties for failures to deliver, then you have the same condition that results from the product-related laws & regs like Regs. E and Z.