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#2201936 - 01/02/19 11:38 PM E-consent disclosure
Beachbum Offline
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Joined: Jul 2018
Posts: 39
Would like to know what date people are putting on Electronic Signature Consent form when sending to customers to accept? We are sending forms out one day and getting them back the next day. Our disclosures are prepared with the date we send out the consent and once we get the consent back the next day, do we need to change the date even though the electronic signing shows the exact date they signed.

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#2201943 - 01/03/19 12:33 PM Re: E-consent disclosure [Re: Beachbum]
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 74,768
Galveston, TX
The only important thing to maintain is the date in which they electronically consented in a demonstrable manner to prove they can access the documents you plan to send.
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#2201979 - 01/03/19 04:49 PM Re: E-consent disclosure [Re: Beachbum]
Beachbum Offline
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Joined: Jul 2018
Posts: 39
How would we handle if a customer submits a HELOC in person and they want to utilize e-disclosures? We have application dated one day and send the consent same day but get it back the next day. The required three day is from the date the completed application is submitted.

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#2201985 - 01/03/19 05:36 PM Re: E-consent disclosure [Re: Beachbum]
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 74,768
Galveston, TX
It is the same problem as you have with TRID applications and disclosures delivered through E-Sign. You get the application - you send the initial disclosure package along with the ability to consent to E-Sign disclosures. The applicant does not complete the demonstrable consent within three business days of application.

Unless you have a process to stick the disclosures in snail mail on the third business day, you have a timing violation.

The previously sent disclosures with no demonstrable consent - well, they just never happened.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2202019 - 01/03/19 08:07 PM Re: E-consent disclosure [Re: Beachbum]
Beachbum Offline
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Joined: Jul 2018
Posts: 39
Thanks

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#2202080 - 01/04/19 04:10 PM Re: E-consent disclosure [Re: Beachbum]
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,150
Bloomington, IN
"How would we handle if a customer submits a HELOC in person "

Not sure I understand this. If they have a HELOC application to submit in person then they should have already received the HELOC Plan Disclosure. If the HELOC application is taken face to face or provided to the consumer in person there is no 3 day allowance to provide the disclosure.

(b) Time of disclosures. The disclosures and brochure required by paragraphs (d) and (e) of this section shall be provided at the time an application is provided to the consumer. The disclosures and the brochure may be delivered or placed in the mail not later than three business days following receipt of a consumer's application in the case of applications contained in magazines or other publications, or when the application is received by telephone or through an intermediary agent or broker.

Official Interpretation

40(b) Time of Disclosures

1. Mail and telephone applications. If the creditor sends applications through the mail, the disclosures and a brochure must accompany the application. If an application is taken over the telephone, the disclosures and brochure may be delivered or mailed within three business days of taking the application. If an application is mailed to the consumer following a telephone request, however, the creditor also must send the disclosures and a brochure along with the application.

2. General purpose applications. The disclosures and a brochure need not be provided when a general purpose application is given to a consumer unless (1) the application or materials accompanying it indicate that it can be used to apply for a home equity plan or (2) the application is provided in response to a consumer's specific inquiry about a home equity plan. On the other hand, if a general purpose application is provided in response to a consumer's specific inquiry only about credit other than a home equity plan, the disclosures and brochure need not be provided even if the application indicates it can be used for a home equity plan, unless it is accompanied by promotional information about home equity plans.

3. Publicly-available applications. Some creditors make applications for home equity plans, such as take-ones, available without the need for a consumer to request them. These applications must be accompanied by the disclosures and a brochure, such as by attaching the disclosures and brochure to the application form.
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The opinions expressed are mine and they are not to be taken as legal advice.

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