Electronic Disclosures

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Question:

Is it legally acceptable to send out initial disclosures electronically and to forgo mail altogether?

Answer:

Yes, the federal ESIGN Act authorizes the substitution of electrons for paper, provided you follow ESIGN's rules for obtaining the customer's informed consent prior to the substitution. (Note that ESIGN is relevant only in cases where a disclosure must be "in writing.") After gaining consent, you must also abide by the specific regulations that govern delivery of each disclosure document in question, including Regs E, P, Z, and DD, RESPA and other state and federal disclosure requirements.

First published on BankersOnline.com 2/26/07