A member of upper level management said that if a potential borrower comes into a branch and asks about a HELOC that disclosures such as "What you should know about Home equity lines of credit" should be immediately given to them. Currently, if a potential borrower comes in the branch personnel can assist them in entering an application electronically but are not Loan Officers. They do have training and have NMLS numbers but the loan is assigned to a Loan Officer. Once the LO receives it, they review it and would send out the disclosures electronically or by mail. Does any disclosures or booklets have to be given out immediately if in person?

From 1026.40

(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. 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.

I just found that. I believe that the thinking was always since the branch employees are helping the members fill out the application online but not receiving it then it would still be considered an electronic application and the 3 day rule comes into play,

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):

i. The disclosures could automatically appear on the screen when the application appears;

ii. The disclosures could be located on the same Web page as the application (whether or not they appear on the initial screen), if the application contains a clear and conspicuous reference to the location of the disclosures and indicates that the disclosures contain rate, fee, and other cost information, as applicable;

iii. Creditors could provide a link to the electronic disclosures on or with the application as long as consumers cannot bypass the disclosures before submitting the application. The link would take the consumer to the disclosures, but the consumer need not be required to scroll completely through the disclosures; or

iv. The disclosures could be located on the same Web page as the application without necessarily appearing on the initial screen, immediately preceding the button that the consumer will click to submit the application.

Thank you!