CD Delivery

Customer wants us to deliver the CD to a relative so they can take it to them. Is this allowed? Would we follow the mail timing since we will not know when the borrower will receive it?

Thank You

There are no provisions for such a delivery method in the regulations. You are in no-man's land.

So then it would be a violation since it is not a method of delivery under the regulation?

Thank you

You can count on hand delivery, you can count on E-Sign delivery, you can count on commercially delivered or post office mail. I see no provisions for other third party delivery.

If you handed my brother in law something and he said he was going to deliver it, I would never see it. Why the heck is a relative involved? There are some privacy concerns here, are there not? If you cannot get them the disclosures otherwise, there is a lot more to this story.

Customer lives in Mexico and cannot come to bank to sign it. As per the officer, mail delivery is not an option.

Thank you

So - exactly when is the relative going to be in Mexico to deliver the disclosures? Is this a foreign national or a US person? Regulation Z does not apply to foreign nationals - only US citizens and US permanent residents,

The relative lives in the US and is going to take it or email it to customer. Customer is a foreign national.

If a borrower is a foreign national purchasing a home in the U.S., Reg Z does not apply? We have been applying it for every foreign national borrower. There are some who live here but are not permanent residents.

If the borrower has E-Mail- send it E-Sign compliant if you feel you must deliver it.

Otherwise:

Official Interpretation
1(c) Coverage
1. Foreign applicability. Regulation Z applies to all persons (including branches of foreign banks and sellers located in the United States) that extend consumer credit to residents (including resident aliens) of any state as defined in §1026.2. If an account is located in the United States and credit is extended to a U.S. resident, the transaction is subject to the regulation. This will be the case whether or not a particular advance or purchase on the account takes place in the United States and whether or not the extender of credit is chartered or based in the United States or a foreign country. For example, if a U.S. resident has a credit card account located in the consumer's state issued by a bank (whether U.S. or foreign-based), the account is covered by the regulation, including extensions of credit under the account that occur outside the United States. In contrast, if a U.S. resident residing or visiting abroad, or a foreign national abroad, opens a credit card account issued by a foreign branch of a U.S. bank, the account is not covered by the regulation.

Thank you