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#1737438 - 08/31/12 08:44 PM Not set up for E-Sign
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,107
In the mountains
We have a customer whose father lives in Australia. The father is moving back to the US. He wants to start the application process to purchase a home. He will be giving power of attorney to his son to sign the loan docs on his behalf but we will be provided these docs in about a months time. In the mean time, if we start the application process we will have 3 days to disclose. We are not set up for e-sign. So do we mail the documents to Australia and send a second copy by encrypted email and when the customer receives the hard copy docs he can sign and mail them back? Or can we fax them and if so, jump through the e-sign hoops?

Any suggestions?
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Lending Compliance
#1737460 - 08/31/12 09:36 PM Re: Not set up for E-Sign Likes to Comply
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
A family with members living on opposite sides of the world should be quite adept at electronic communications. If the father is willing to use email to facilitate the mortgage application, ESIGN should not be a big deal.

I assume you will convert all necessary documents and disclosures to pdf format, encrypt them, and attach them to an email message. The hardware/software/how-it-works disclosures should be fairly simple to construct. Here's everything ESIGN requires:

(B) the consumer, prior to consenting, is provided with a clear and conspicuous statement—
(i) informing the consumer of (I) any right or option of the consumer to have the record provided or made available on paper or in nonelectronic form, and (II) the right of the consumer to withdraw the consent to have the record provided or made available in an electronic form and of any conditions, consequences (which may include termination of the parties’ relationship), or fees in the event of such withdrawal;
(ii) informing the consumer of whether the consent applies (I) only to the particular transaction which
gave rise to the obligation to provide the record, or (II) to identified categories of records that may be provided or made available during the course of the parties’ relationship;
(iii) describing the procedures the consumer must use to withdraw consent as provided in clause (i) and to update information needed to contact the consumer electronically; and
(iv) informing the consumer (I) how, after the consent, the consumer may, upon request, obtain a paper
copy of an electronic record, and (II) whether any fee will be charged for such copy;

(C) the consumer—
(i) prior to consenting, is provided with a statement of the hardware and software requirements for access to and retention of the electronic records....


Pick out the disclosable items, rewrite them in your words and with your information, and put them in the same type of encrypted pdf document you will use for the loan disclosures. Add a code phrase to this sample document, such as "I want e-documents." Instruct the applicant to copy and paste or retype this phrase into an email reply and send it back to you. When you receive a proper reply, you are ESIGN-compliant and ready to send whatever disclosures you & the customer agreed.
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