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Electronic delivery of escrow analysis statements

Question: 
We are thinking about placing the Annual Escrow Analysis statements on customers' online banking portal (same place where monthly statements reside). In looking at 1024.17 (and its subpart under RESPA), there doesn't appear to be any call out eliminating the need to deliver via USPS. If we went to electronic delivery (within compliance under the ESIGN Act), would we then still have to deliver a physical copy of the annual escrow analysis statement (when required under the same citation)?
Answer: 

by Randy Carey:

Totally depends on your current E-Sign agreement as to whether the agreement covers the delivery of the annual escrow analysis statement.

1024.3—E-Sign applicability.
The disclosures required by this part may be provided 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.).

Answer: 

by John Burnett:

When a business, such as a bank, decides to offer electronic delivery of disclosures or other information that is required to be delivered in writing to a consumer under federal or regulation, they can use the E-SIGN Act to make electronic delivery the legal equivalent of delivery in writing. The E-SIGN Act requires that the business that offers electronic delivery in lieu of delivery in written form must obtain demonstrative consent from the consumer after describing the disclosures or other federally mandated written information, providing the consumer a description of what the consumer must be able to do to receive and read the electronic delivery, and then provide a way for the consumer to demonstrate that the consumer has what is needed to receive and read a sample document.

The scope of the business's list of disclosures or other mandated writings is important. The consumer's consent only covers the items described in that scope.

So when a bank solicits demonstrative consent from a consumer for receipt of electronically delivered disclosures, the bank should consider how broad that scope should be. For a deposit account, the bank may want to get statements out electronically, but what about including other disclosures and notices within the scope to avoid the need to get additional E-SIGN consents for other written communications to the customer? Think broadly when crafting your E-SIGN solicitations to consumers.

First published on 01/12/2025

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