Electronic Delivery Mortgage Loan Disclosures

Posted By: swiggles

Electronic Delivery Mortgage Loan Disclosures - 05/25/10 06:34 PM

We are preparing to deliver our mortgage loan disclosures electronically. And so I am in uncharted territory. I thought that perhaps some of you who already do this might be able to answer a question.

We're utilizing a software for this delivery. If the applicant chooses to receive the disclosures electronically, they must signify acceptance of this method. This is done by the applicant clicking an "acknowlegement" button and then typing his/her name in a blank field. However, on the acknowledgment form, there is a statement that says, "Typing one Borrower's name signifies the acceptance of all applicants associated with this transaction." Is that OK????
Posted By: RR Joker

Re: Electronic Delivery Mortgage Loan Disclosures - 05/25/10 07:15 PM

How are you handling demonstrable consent? I don't see that mentioned anywhere.
Posted By: swiggles

Re: Electronic Delivery Mortgage Loan Disclosures - 05/25/10 09:45 PM

I didn't research the demonstrable consent part of this, but I would assume it would be evident because the customer receives an email with instructions on how to log in to the secure site to retrieve the disclosures. So if the customer signs in to retrieve the documents, he/she then must have received the email. In the email, there are also instructions for requesting paper documents and a notification back to the bank, whether the customer's response is yes or no to the receipt of the documents (or no response would indicate that the email was not received).

But my question is....can one applicant acknowledge for all applicants with respect to receiving disclosures electronically?
Posted By: Will B

Re: Electronic Delivery Mortgage Loan Disclosures - 05/25/10 09:54 PM

If the regulation only requires one copy of the disclosure such as the GFE or preliminary TIL then obtaining consent from one applicant should be sufficient to send one disclosure naming both applicants. But for disclosures that may need to go to both consumers separately, such as adverse action notices, I don't think you can send them both electronically if only one applicant consented to e-disclosure.
Posted By: Richard Insley

Re: Electronic Delivery Mortgage Loan Disclosures - 06/05/10 12:10 PM

Originally Posted By: swiggles
I didn't research the demonstrable consent part of this, but I would assume it would be evident

Make no assumptions--check it out. If you don't follow ESIGN's regimen, then none of your e-delivered documents count. It's almost like you printed them out and immediately fed the paper through a shredder.