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#1915813 - 04/18/14 05:02 PM E-Sign
wns Offline
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Joined: Dec 2010
Posts: 41
If the customer requests to receive their loan disclosures via email, so they can print them at home, and return a signed hard-copy of the disclosures to the lender either in person or through the mail, do we have to comply with E-Sign? The customers are not signing the documents electronically.

If we must comply with E-Sign, how would we demonstrate demonstrable consent? Would we follow procedures similar to customers viewing account statements through online banking? Simply have the customer receive, open, and view a test document to verify their ability to receive the disclosures?

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eBanking / Technology
#1915848 - 04/18/14 05:55 PM Re: E-Sign [Re: wns]
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 9,819
Toano, VA
1. Yes, you are delivering electrons, not paper. (Signatures, wet or electronic, are not required by the laws/regs that require you to deliver most of (all?) the loan disclosures.)
2. It's a bad idea to provide one-off e-deliveries of documents required by law/regulation. Instead, your institution should determine if this is a service that's worth the implementation cost, and then go through a full controlled implementation.
3. The procedures for any type of e-delivery are more or less the same. First you provide all the pre-consent disclosures required by ESIGN. Then, you put the customer through a test drive. If the customer demonstrates to you that s/he can receive, open, and read a test document of the type and delivered in the same manner you will use to send the loan disclosures, retain evidence of what you did and then you're good to go.
4. Yes, receive, open, and view--followed by some type of electronic response that includes the customer's statement of consent and proves in some manner (code word, PIN, etc.) that the customer has the savvy to use the e-docs you want to send by email. Simply getting the customer to confirm receipt of the test document is not enough. There must be proof the customer could read the content of the test document.
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#1915849 - 04/18/14 05:55 PM Re: E-Sign [Re: wns]
RR Jen Offline
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RR Jen
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Make sure you are not confusing "electronic signatures" and "electronic delivery". In my opinion, yes you need demonstrable consent when providing loan disclosures electronically.

We send out a PDF document electronically, via the same channel the loan docs will be sent, with a "PIN" number in it and ask the customer to reply indicating they were able to open the document and let us know what the number was. We retain that response as our demonstrable consent.
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#1915852 - 04/18/14 05:57 PM Re: E-Sign [Re: RR Jen]
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 9,819
Toano, VA
Originally Posted By: RR Jen
Make sure you are not confusing "electronic signatures" and "electronic delivery". In my opinion, yes you need demonstrable consent when providing loan disclosures electronically.

We send out a PDF document electronically, via the same channel the loan docs will be sent, with a "PIN" number in it and ask the customer to reply indicating they were able to open the document and let us know what the number was. We retain that response as our demonstrable consent.
Good system!
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#1915854 - 04/18/14 05:57 PM Re: E-Sign [Re: wns]
RR Jen Offline
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RR Jen
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Thanks! Your answer was more detailed than mine but glad we agree. smile
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