Issue re: periodic statements for a consumer mortgage loan: We mail all periodic statements via US Mail because our email process is not E-Sign Compliant. We have a borrower who is demanding that we NOT mail periodic statements to him because he spends half his time in one state and the other half of the year in another and he doesn’t want statements to “pile up” - he wants us to email them. Is there any solution or work around to this dilemma?

Mortgage periodic statements do not require ESIGN if you deliver any other statements to the individual electronically. There is a specific carve-out in the rule that spells this out.

See commentary 41-c-3 and 41-c-4

3. Electronic distribution. The periodic statement may be provided electronically if the consumer agrees. The consumer must give affirmative consent to receive statements electronically. If statements are provided electronically, the creditor, assignee, or servicer may send a notification that a consumer's statement is available, with a link to where the statement can be accessed, in place of the statement itself.

4. Presumed consent. Any consumer who is currently receiving disclosures for any account (for example, a mortgage or checking account) electronically from their servicer shall be deemed to have consented to receiving e-statements in place of paper statements.

Thank you for that information - I was not aware of that. We do offer electronic statements for our checking accounts - a link to where the statement is located. As I read the above, the consent for the DDA side would allow us to Email the mortgage periodic statement - and not simply send a link to where it is on our website (like our DDA statements?).

Are your checking account statements Esign compliant?

Also - if you do send them email - make sure they are encrypted.

Yes, our checking account statements are compliant. And we can send encrypted emails. Thank you for the information!!