Hi, I've reviewed 1026.41(c) which states we may send mortgage periodic statements electronically if the consumer consents. However, can we mandate electronic delivery? I don't see this as expressly prohibited, but I'm wondering if potentially UDAAP comes into play.

Can we require electronic delivery of mortgage periodic statements?

Thank you.

(c) Form of the periodic statement. The servicer must make the disclosures required by this section clearly and conspicuously in writing, or electronically if the consumer agrees, and in a form that the consumer may keep.

How do they agree if you mandate it?

Thank you for the fast response.

If the consumer doesn't agree, they wouldn't qualify for our preferred interest rate. They'd still qualify for a loan program, just at a higher interest rate, so there's still options for those that desire a paper statement.

Do you believe this poses a concern for us?

Well, you have a regulatory duty to provide the statement. So, what is the value of not mailing a statement and delivering it electronically versus mailing a statement. If you are going to give me even a 10 basis point break on the interest rate for electronic statements, on a $250,000 30 year mortgage, you are talking about an approximate interest amount difference of an additional $4,500 over the life of the loan.

So, who does not have internet access - elderly, minorities - if you don't have internet access, how are you able to agree to getting your statement electronically?

What is your business justification if this practice impacts protected classes through disparate impact.

These are not checking accounts you are talking about and you are talking about a significant amount of interest on mortgage loans. It is a whole different ball game then giving a customer a $2 break on the monthly price of a checking account.