[Kristin]

Our practice is to send our LE out via an ESIGN method, however when the customer fails to consent/review the disclosures within the 3 day timeframe we will mail a disclosure package on the 3rd day. Our system is a little quirky so instead of changing the LE issue date in the system we just add to the notes in the system the date we actually mailed the disclosures. So, the date on the disclosures and the date we actually mailed them out do not agree. It seems based on 1026.37(a)(4) that this is incorrect, but I want to make sure it not okay to keep the date that it was actually issued.

Topic

[rcooper]

I agree this seems incorrect. The “Date Issued” should be the date that the disclosures are mailed or delivered. Since the consumer never consented to receive the disclosures electronically you did not deliver them electronically; rather you issued paper copies on a different date. As a result, the date they were issued electronically isn’t the actual “date issued”. Relying on a date that they were delivered electronically is not the same as the date they were actually issued (since ESign compliance wasn’t met). It would be worth a call to your LOS vendor to see if there is a way to resolve this.

I’ll forward this to Jack for any additional comments he might have.

[jholzknecht]

Kristin,

You should have the consumer provide consent to receive electronic disclosures at the time of application. Then the electronic disclosure is deemed given when you send. As long as you have record of sending the disclosure you have met the timing requirement. It is doubly effective if the consumer acknowledge receiving you electronic disclosure, but again you have met the timing requirement if you send the electronic disclosure within three business days of receiving the application.

[Author]

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