[tressa]

Under REG B, disclosures that are required to be provided in writing may be provided to the applicant in electronic form, subject to compliance with the E-SIGN Act. It also states that certain disclosures, such as the appraisal notice, may be provided to applicants in electronic form without regard to the consumer consent or other provisions of the E-SIGN Act, if the application is accessed by the applicant in electronic form.

Do you agree with the following statements?

If an applicant applies for a loan online using a bank’s website, then the appraisal notice can be provided electronically to the applicant without regard to the E-SIGN Act requirements.

If the application is face to face, mail, fax, etc., the appraisal notice cannot be provided electronically without complying with the E-SIGN Act.

If the application is emailed to an applicant by a loan officer and the applicant completes the fillable application and returns it via email, the appraisal notice can be provided electronically to the applicant without regard to the E-SIGN Act requirements.

Topic

[rcooper]

I think this is generally accurate, but the exception only applies if the notice is provided with an application accessed by electronic form.

1002.4(d)(2) Disclosures in electronic form. The disclosures required by this part that are required to be given in writing may be provided to the applicant 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.). Where the disclosures under §§ 1002.5(b)(1), 1002.5(b)(2), 1002.5(d)(1), 1002.5(d)(2), 1002.13, and 1002.14(a)(2) accompany an application accessed by the applicant in electronic form, these disclosures may be provided to the applicant in electronic form on or with the application form, without regard to the consumer consent or other provisions of the E-Sign Act.

You also have the HPML appraisal notice requirement that might be applicable. Reg Z says this about the form of disclosures (does not have the same language as Reg B regarding the appraisal notice provided with electronic application and Esign):
1026.17(a)(1) The creditor shall make the disclosures required by this subpart clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures required by this subpart may be provided to the consumer 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.). The disclosures required by §§ 1026.17(g), 1026.19(b), and 1026.24 may be provided to the consumer in electronic form without regard to the consumer consent or other provisions of the E-Sign Act in the circumstances set forth in those sections. The disclosures shall be grouped together, shall be segregated from everything else, and shall not contain any information not directly related to the disclosures required under § 1026.18, § 1026.20(c) and (d), or § 1026.47. The disclosures required by § 1026.20(d) shall be provided as a separate document from all other written materials. The disclosures may include an acknowledgment of receipt, the date of the transaction, and the consumer’s name, address, and account number. The following disclosures may be made together with or separately from other required disclosures: The creditor’s identity under § 1026.18(a), the variable rate example under § 1026.18(f)(1)(iv), insurance or debt cancellation under § 1026.18(n), and certain security interest charges under § 1026.18(o). The itemization of the amount financed under § 1026.18(c)(1) must be separate from the other disclosures under § 1026.18, except for private education loan disclosures made in compliance with § 1026.47.

[Author]

Replies