We accept HELOC applications via our website. Disclosures are provided via US mail within 3 days of receipt of application. I'm understanding Reg Z- §226.5b(b) to require disclosures to be provided at the time of application. Our line of business says these disclosures are required within 3 business days following receipt of application, (and is citing the footnote 10a, under §226.5b(b) as it's defense.) Are we required, for HELOC applications received via our website, to provide disclosures at the time of application? Is the 3 business day window acceptable?

Your "line of business" is incorrect. The disclosures are required at the time you provide an application to the consumer and you are providing the consumer an application on your Web site.

From 226.5b:

(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.10a


10a 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.

Footnote 10a does not exempt applications provided on one's Web site.


PS. The same timing requirements hold true for ARM loans.

Anticipating the next follow-up question--"what's the difference between a phone call and a dial-up Internet session?"--the answer is that your web site allows interactive text exchanges and an ordinary phone call has no text capability. In order to provide a "written" document, you must be able to deliver text to the applicant.

Also note the commentary 226.5b(a)(1): 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.