[Angie Cowell]

If we send an early CD that has a change of circumstance (COC) on it and only one person consents are we okay using this for a valid COC?
I know it won’t work for a CD since all parties have to sign but will it be proof for our COC?

Topic

[rcooper]

Can you explain the situation a little futher? I don’t think I have enough information to provide a response. Thanks.

[Angie Cowell]

We have provided an initial Closing Disclosure (CD) to the borrowers. We now have a change of circumstance (COC) so we have provided a new initial CD outlining the COC to the borrowers. We have provided this via e-sign. If we have multiple borrowers and only one borrower acknowledge receipt of the COC, does that suffice as receipt or do we need to mail to those that have not acknowledged? We already have acknowledgement of receipt for the first initial CD and a Final CD will be provided at closing.

[rcooper]

Thanks for the details.

19(f)(1)(iii)-2. Other forms of delivery. Creditors that use electronic mail or a courier other than the United States Postal Service also may follow the approach for disclosures provided by mail described in comment 19(f)(1)(iii)-1. For example, if a creditor sends a disclosure required under § 1026.19(f) via email on Monday, pursuant to § 1026.19(f)(1)(iii) the consumer is considered to have received the disclosure on Thursday, three business days later. The creditor may, alternatively, rely on evidence that the consumer received the emailed disclosures earlier after delivery. See comment 19(e)(1)(iv)-2 for an example in which the creditor emails disclosures and receives an acknowledgment from the consumer on the same day. Creditors using electronic delivery methods, such as email, must also comply with § 1026.38(t)(3)(iii). For example, if a creditor delivers the disclosures required by § 1026.19(f)(1)(i) to a consumer via email, but the creditor did not obtain the consumer’s consent to receive disclosures via email prior to delivering the disclosures, then the creditor does not comply with § 1026.38(t)(3)(iii), and the creditor does not comply with § 1026.19(f)(1)(i), assuming the disclosures were not provided in a different manner in accordance with the timing requirements of § 1026.19(f)(1)(ii). (emphasis added)

You are not requied to get acknowledgement of receipt of the email just like you aren’t required to get acknowledgement of receipt of snail mail. “Section 1026.19(f)(1)(iii) provides that if any disclosures required under § 1026.19(f)(1)(i) are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.” Getting acknowledgement of the email will allow you deem the disclosure received earlier; if you don’t get acknowledgement receipt is deemed to be 3 business days after the email is sent. Assuming you have complied with esign you should not need to send the disclosures via mail. I hope that helps.

[kmeade]

If esign was properly executed, would receipt of acknowledgment from only one borrower be sufficient to start the counter for closing?

[rcooper]

See below. I bolded the info applicable to your quesiton.

1026.17(d) “Multiple creditors; multiple consumers. If a transaction involves more than one creditor, only one set of disclosures shall be given and the creditors shall agree among themselves which creditor must comply with the requirements that this part imposes on any or all of them. If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the obligation. If the transaction is rescindable under §1026.23, however, the disclosures shall be made to each consumer who has the right to rescind.”

[Author]

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