Delivery of Appraisal Report

Currently, we are mailing hard copies of appraisals to mortgage borrowers. We would like to begin providing them electronically to those customers that have e-Sign consent.

I don't know much about how Encompass works, so I am hoping someone can enlighten me. Is there a way to provide the appraisal report from Encompass similar to how we provide other disclosures? Or can we send the appraisal report using secure email?

1002.14(a)(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.).

Right. I am aware of that. But I don't have much knowledge about Encompass, so my question is more related the HOW. So we are good then to send via email (securely, of course)?

Secured e-mail is not e-Sign compliant. I cannot answer your Encompass question.

That's what I was thinking. I have people telling me this is how we did it at another bank.

So now I need to figure out how we can do this from Encompass. I'm sure it can be done, but our administrator is not that knowledgeable. I was hoping someone could provide some information.

That might work for non-consumer appraisals as long as you have agreed to that approach with your commercial borrowers.

Randy,
Can you explain why secure email is not E-Sign compliant? I am getting some MAJOR pushback on this.

This relates to mortgage loans.

And yes, we did it when I worked for a business bank to deliver appraisals associated with commercial loans.

The argument I'm getting is that they have agreed to electronic delivery when they signed the E-Sign Consent.

Because if the borrower has agreed to E-Sign through Encompass, then all documents have to be delivered through the same E-Sign system. I doubt that the Encompass E-Sign system is just a secured e-mail through your separate e-mail server. How do you track delivery through just your secured e-mail? I am sure Encompass provides tracking and documentation of what was sent.

i. For purposes of this timing requirement, "provide" means "deliver." Delivery occurs three business days after mailing or delivering the copies to the last-known address of the applicant, or when evidence indicates actual receipt by the applicant, whichever is earlier. Delivery to or actual receipt by the applicant by electronic means must comply with the E-Sign Act, as provided for in § 1002.14(a)(5).

The argument I'm getting is that they have agreed to electronic delivery when they signed the E-Sign Consent.

They gave demonstrable consent through a specific delivery system. As Randy indicated delivering secure email through your bank's email server is not the same delivery system they gave their consent to receive electronic documents.