E-mailing appraisals and ESIGN

Posted By: tgpitts11

E-mailing appraisals and ESIGN - 09/29/14 08:19 PM

Our applicants submit applications online and in person. For the online applicants, we have ESIGN protocols in place and can e-mail the appraisal.

Our lenders want to be able to e-mail appraisals to in-person applicants and want to use a paper ESIGN consent disclosure, but I've always thought that ESIGN was a purely electronic disclosure and you couldn't use a paper format.

So if I have a customer sign a paper form, can I e-mail the appraisal and have the customer reply back to confirm receipt?
Posted By: #Just Jay

Re: E-mailing appraisals and ESIGN - 09/30/14 01:40 PM

What does signing a paper form do to demonstrate that they can in fact receive, open, and read emails sent by you, prior to you sending the appraisal?

Also, for the applicants that apply online, are you sending the emailed appraisals from the same source your are providing disclosures or no? I would also opine that if you are using a vendor to assist with taking applications online, that that esign protocol to receive disclosures via the vendor may be separate from the protocol to receive disclosures directly from your loan officers and processors.
Posted By: John Burnett

Re: E-mailing appraisals and ESIGN - 09/30/14 02:22 PM

A paper E-SIGN consent isn't worth the paper it's printed on because it doesn't demonstrate the signer can receive your e-delivered appraisal. Without the demonstrable consent, your e-delivery can't satisfy the requirement for a written copy.
Posted By: tgpitts11

Re: E-mailing appraisals and ESIGN - 10/01/14 01:29 PM

So if our loan officers e-mail the appraisal (as opposed to a third party service, is there a need for an ESIGN disclosure for this particular function?

We do require the applicant to reply to the e-mail and confirm receipt.
Posted By: rlcarey

Re: E-mailing appraisals and ESIGN - 10/01/14 01:47 PM

(5) Copies in electronic form. The copies required by 1002.14(a)(1) may be provided to the applicant 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.).

Without the E-Sign handshake, you don't comply with the provisions of E-Sign, regardless of whatever else you may be doing.

I also surely hope that the e-mail system you are referring to is encrypted.
Posted By: John Burnett

Re: E-mailing appraisals and ESIGN - 10/01/14 03:26 PM

The requirement is that a copy of the written appraisal be provided. Randy has provided the language of the paragraph that explicitly requires E-Sign compliance to substitute e-delivery for paper and ink. You can't get around that, with or without a signed receipt.

If a consumer is your applicant, E-Sign has specific steps that have to be completed to complete the requirement for demonstrative consent; if the applicant is a business, E-Sign requires the agreement of the applicant to accept electronic delivery.
Posted By: tgpitts11

Re: E-mailing appraisals and ESIGN - 10/01/14 05:19 PM

Dumb question: How do I justify to management to require encryption of e-mails delivering appraisals? Some feel that there is no non-public personal info involved.
Posted By: rlcarey

Re: E-mailing appraisals and ESIGN - 10/01/14 05:27 PM

You might want to kindly remind them of how personal information is defined in Regulation P:

Personally identifiable financial information includes:

(C) The fact that an individual is or has been one of your customers or has obtained a financial product or service from you; (this includes while the consumer is just an applicant)

(E) Any information that a consumer provides to you or that you or your agent otherwise obtain in connection with collecting on, or servicing, a loan or a credit account;
Posted By: tgpitts11

Re: E-mailing appraisals and ESIGN - 10/01/14 07:10 PM

Very helpful. Thank you!
Posted By: MyBrainHurts

Re: E-mailing appraisals and ESIGN - 10/02/14 07:54 PM

We are delivering appraisals in an ESIGN compliant manner using a BOL sponsor, Mercury Network.

http://www.mercuryvmp.com/product/SureReceipts/

I looked at several vendors who didn't know what they were doing, and then found Mercury Network right under my nose in the daily BOL compliance email.