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#2224080 - 10/21/19 07:55 PM 1003 Delivery---Esign/UETA
Joe S Offline
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Joined: Jun 2019
Posts: 9
Hi everyone, was wondering if I could get some feedback.

I have a correspondent lender in Texas whose MLO delivered a blank 1003 to an applicant through email in order for the applicant to fill out to apply for a loan. My initial reaction was to ask for proof of consent to receive disclosures electronically. Is that a warranted concern in this situation? Would the consent requirement not apply in this situation or for the 1003?

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Lending Compliance
#2224083 - 10/21/19 08:30 PM Re: 1003 Delivery---Esign/UETA Joe S
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The 1003 is not a disclosure required to be provided to the consumer in writing by the regulation. If the 1003 is the only form mailed without e-consent then you should be fine.

Welcome to BOL.
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#2224085 - 10/21/19 08:41 PM Re: 1003 Delivery---Esign/UETA Joe S
Joe S Offline
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Joined: Jun 2019
Posts: 9
Thank you for the welcome, and for the feedback!

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#2224089 - 10/21/19 08:56 PM Re: 1003 Delivery---Esign/UETA Joe S
Richard Insley Online
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Richard Insley
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Toano, VA
If the lender plans to transmit the credit decision to the applicant via email when the time comes, consent will be needed if there is adverse action. Logistically, you want to get that out of the way now--while the applicant is optimistic (and cooperative.)
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#2224549 - 10/28/19 05:36 PM Re: 1003 Delivery---Esign/UETA Joe S
Tarhe Offline
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Joined: Nov 2006
Posts: 1,195
California
I had read in an article: "Additionally, if the bank will be sending the URLA electronically, such as by email or through another online portal, the bank must comply with the E-Sign Act before doing so, as the application contains federally required disclosures."

Thoughts?

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#2224550 - 10/28/19 05:45 PM Re: 1003 Delivery---Esign/UETA Joe S
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
And just what disclosures does a 1003 contain???
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#2224556 - 10/28/19 06:02 PM Re: 1003 Delivery---Esign/UETA Joe S
Tarhe Offline
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Joined: Nov 2006
Posts: 1,195
California
I presumed the article referred to the "alimony, child support, separate maintenance payments" disclosure? Also the individual vs. joint credit and HMDA disclosure on the Demographic collection page?

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#2224558 - 10/28/19 06:07 PM Re: 1003 Delivery---Esign/UETA Joe S
rlcarey Online
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rlcarey
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Galveston, TX
I think they are nuts - you are just providing a blank application - correct? Which is completed and returned to the bank?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2224559 - 10/28/19 06:08 PM Re: 1003 Delivery---Esign/UETA Joe S
Tarhe Offline
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Joined: Nov 2006
Posts: 1,195
California
Yes, just a blank application. So, then, our MLOs may email a 1003 without E-Sign, as per the discussions above. Thank you!!

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#2224567 - 10/28/19 06:31 PM Re: 1003 Delivery---Esign/UETA Joe S
Richard Insley Online
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Richard Insley
Joined: Oct 2000
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Toano, VA
See Section 1002.4(d)(2), 2nd sentence. This is your specific authorization to skip ESIGN for several of the incidental notices Reg B requires you to include in a credit application.
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#2225486 - 11/12/19 09:29 PM Re: 1003 Delivery---Esign/UETA Joe S
Sheldon Hendrix Offline
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Sheldon Hendrix
Joined: Jun 2006
Posts: 1,156
South
I read the aforementioned article today and was immediately suspicious about the statement of needing to follow ESIGN for sending out applications. Richard is right about these really being the only "disclosures" on application forms, and Reg. B has always exempted them from ESIGN (as is the case with most consumer regulations exempting application related disclosures).

This article was from a very reputable industry source as well.

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