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#2243977 - 10/13/20 06:29 PM HELOC phone application and eSign
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
For HELOC telephone applications, I can't find anything that tells me we can't send the application disclosures via eSign, provided they're sent within 3 days of application. The regulation references "delivered" or "mailed". So, does sending through DocuSign or another tool meet the requirement for "delivered"? I believe so, but would like another opinion. Thanks!

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#2243978 - 10/13/20 06:35 PM Re: HELOC phone application and eSign M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,243
Galveston, TX
What if they never complete the demonstrable consent on time - it would just like what happens with an LE, it would never be considered delivered - but yes you can.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2243987 - 10/13/20 08:13 PM Re: HELOC phone application and eSign M&M
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
Hi Randy-
Would the following allow us to send them and have them be considered "delivered" even if they didn't complete the demonstrable consent on time? Or would this only pertain to instances where they were applying or inquiring online?

1026.5(a)(iii) The disclosures required by this subpart may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq. ). The disclosures required by ยงยง1026.60, 1026.40, and 1026.16 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections
Last edited by M&M; 10/13/20 08:17 PM.
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#2243991 - 10/13/20 08:59 PM Re: HELOC phone application and eSign M&M
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 77,243
Galveston, TX
See 1026.40(a)(3) and Comment 5 in that section. Other than for an electronic application you would have to comply with E-Sign.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2243992 - 10/13/20 09:01 PM Re: HELOC phone application and eSign M&M
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,417
Bloomington, IN
in the circumstances set forth in those sections

Review 1026.40(a)(3) and its OSI.

5. Form of electronic disclosures provided on or with electronic applications. Creditors must provide the disclosures required by this section (including the brochure) on or with a blank application that is made available to the consumer in electronic form, such as on a creditor's Internet Web site. Creditors have flexibility in satisfying this requirement. Methods creditors could use to satisfy the requirement include, but are not limited to, the following examples (whatever method is used, a creditor need not confirm that the consumer has read the disclosures):

A telephone application is not an electronic application.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2244001 - 10/13/20 10:15 PM Re: HELOC phone application and eSign M&M
M&M Offline
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Joined: Nov 2003
Posts: 527
Midwest
Agree with you both! Someone was trying to argue this with me, and I just wanted to be sure I hadn't missed anything. Thanks!

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