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We are looking at implementing electronic delivery due to the new Integrated Disclosure rules using a third party that will provide secure delivery, and that will USPS mail disclosures if they have not been “picked up” by the applicant after 48 hours. If we use their mail service, and in order to provide the Loan Estimate within 3 days of application, if we upload the disclsoures in the 2nd day after application, and the applicant doe snot “pick up” their disclosures, with the servicing waiting 48 hours, they would be mailed the 4th day after application. My question is if that meets the timing requirement. I do not think so, but want to double check.
My second question is if the applicant receives the E-Sign disclosures, accepts, and demonstrates they can receive electronic disclosures first, then after that later is sent disclosures, is confirmation each item sent by the bank is actually received/looked at or veiwed by the applicant? The third party will keep a log to show items have been “picket up” but is that required?
If you plan to deliver the disclosures electronically you must comply with E-SIGN.
Assuming you comply with E-SIGN, if you electronically deliver the disclosures the consumer is considered to have received them 3 business days after they are sent. You are not required to determine whether or not the consumer has opened or reviewed the disclosures.
You may also rely on evidence that the consumer received the emailed disclosures earlier. For example, if the creditor emails the disclosures at 1 p.m. on Tuesday, the consumer emails you with an acknowledgement of receipt of the disclosures at 5 p.m. on the same day, the creditor could demonstrate that the disclosures were received on the same day.
Our system is set up this way. We keep documentation (tracking history) in the file to show when the disclosures were first available to the consumer. We have had one auditor question this originally, but was fine after showing the history of when the disclosures were initially available to the customer.
The Bank,
The key to a timely delivery of the Loan Estimate is that the disclosure must leave your hands witthin three days. It appears that when you upload the disclosures on day 2 they become available to the consumer and you have made a timely delivery of the disclosures at that time. Mailing it two days ater does not increase your level of compliance, but it does not hurt either.
As Robin explained in response to your second question, disclosures are deemed received by the consumer three days after you send them.
MCCompliance offers a good suggest for documenting compliance. Thanks to MCCompliance for the reply.
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