[Kristin]

We want to begin sending our appraisals to customers via our ESIGN compliant system. A customer will go through all of the ESIGN steps at the beginning of the loan process and will receive early disclosures through the system. Once it is time to deliver the appraisal, can we begin counting our 3 day waiting period when we send the appraisal via the system or do we have to wait until either (a) the system has evidence that the customer viewed the appraisal or (b) three days after it is sent like snail mail delivery? We are unsure when the clock starts ticking for the requirement to provide the appraisal 3 days prior to closing.

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[rcooper]

As you stated, if you will be sending the appraisal electronically then you must comply with e-sign. You do not need evidence that the customer viewed the appraisal or opened the email. An emailed appraisal is considered delivered three days after transmitting the email (like snail mail). If you have evidence of receipt sooner than the third business day after sending (which should be easy with email), then the date that is received is considered the delivery date.

Small Entity Compliance Guide: “Send the copies to the applicant’s last-known physical or electronic address. Delivery occurs three business days after you mail or transmit the copies, or whenever you have evidence indicating that the applicant received the copies.”

35(c)(6)(ii) Timing.
1. “Provide.” For purposes of the requirement to provide a copy of the appraisal within a specified time under § 1026.35(c)(6)(ii), “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 (which, in the case of electronic receipt, must be based upon consent that complies with the E-Sign Act), whichever is earlier.

1026.14(a)(1)-4.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).

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