Notice to Borrower and Certified Mail Receipt

Posted By: anon2006

Notice to Borrower and Certified Mail Receipt - 04/20/07 06:21 PM

The flood regulation states "the regulations require the lender to retain a record or evidence of the borrower's receipt or evidence of the borrower's receipt of the notice throughout the period the lender owns the loan. This record can be the borrower's statement or initials that the notice was received directly, or the U.S.P.S. return receipt in either hard copy or electronic format."

My question is:
If we have a document from the USPS showing the date and time the document was delivered but we dont have a signed Notice to Borrower or a signed certified mail receipt are we in compliance?


Thank you
Posted By: Al Miller

Re: Notice to Borrower and Certified Mail Receipt - 04/20/07 06:29 PM

IRS has stated that the document from the USPS shows the date and time the envelope was delivered and has claimed that is not enough on tax matters.

However, I think the word "or" in your quote answers your question as to flood.

Al
Posted By: CalifDreamin

Re: Notice to Borrower and Certified Mail Receipt - 11/29/18 02:08 PM

We are looking into the USPS option of the electronic receipt for certified mail as it is less expensive, and in researching, I came across this thread. Does anyone happen to know about this IRS position, and do you happen to have a link to where they've said this?
Posted By: rlcarey

Re: Notice to Borrower and Certified Mail Receipt - 11/29/18 02:19 PM

What does the IRS position have to do with flood compliance?
Posted By: rlcarey

Re: Notice to Borrower and Certified Mail Receipt - 11/29/18 02:38 PM

Plus that thread is 11 years old. The IRS issued new regulations in 2011.

https://www.law.cornell.edu/cfr/text/26/301.7502-1
Posted By: CalifDreamin

Re: Notice to Borrower and Certified Mail Receipt - 11/29/18 10:20 PM

Thank you for the link, Randy - I did locate that after I posted that this morning - I should've deleted my post.

The earlier question was: If we have a document from the USPS showing the date and time the document was delivered but we don't have a signed Notice to Borrower or a signed certified mail receipt are we in compliance?

To which Al replied that "IRS has stated that the document from the USPS shows the date and time the envelope was delivered and has claimed that is not enough on tax matters."

We are looking at utilizing the electronic receipt option USPS is giving for certified mail, and one of the questions someone raised is - will that be acceptable if a rule requires certified mail because there is a disclaimer in the paper work rec'd from USPS indicating that they aren't responsible for acceptance of this method. So, I was asked to see what the experience of other banks has been (although I don't think it really matters because the issue comes down to whether or not a court will accept this electronic method vs the antiquated method, and it appears to be jurisdictional). At any rate...I came across this thread and was curious as to read that item from IRS if it was still available - mainly to just see what it said just in case it touched on this.
Posted By: rlcarey

Re: Notice to Borrower and Certified Mail Receipt - 11/29/18 11:08 PM

Well, the real problem is that the whole return receipt business was in the Mandatory Purchase booklet of FEMAs that has been rescinded. Return receipts are not addressed in the statute, regulations or the Q&As. You don't have to worry about any courts, there is no civil liability provision that a consumer may have against you, you only have to satisfy your regulator that the notice was delivered. If you have a return USPS receipt - I have never seen a regulator question it.