[Angie Cowell]

On a transaction that is rescindable, if we send a change of circumstance on a closing disclosure and send via our e-sign system, (we already obtained consent for e-sign) do we have to have acknowledged receipt by both borrowers or just one? If we see that one borrower acknowledges via our e-sign system but the other does not, do we have to wait the allotted days as described in the regulation, or are we fine to proceed to closing since one borrower has acknowledged?
I have reviewed 19(f)(1)(ii) Timing and 19(f)(1)(iii) Receipt of disclosures, (2) Subsequent changes and 17(d)(2) Multiple consumers.

Thank you for your assistance.

[kmeade]

following!

[Angie Cowell]

Any response for above question?

[rcooper]

I apologize we overlooked your question earlier. My interpretation is you would need to wait the three business days for them to be considered delivered if you don’t have evidence they received them earlier. Here’s why…

1026.17(d):
2. Multiple consumers. When two consumers are joint obligors with primary liability on an obligation, the disclosures may be given to either one of them. If one consumer is merely a surety or guarantor, the disclosures must be given to the principal debtor. In rescindable transactions, however, separate disclosures must be given to each consumer who has the right to rescind under § 1026.23, although the disclosures required under § 1026.19(b) need only be provided to the consumer who expresses an interest in a variable-rate loan program. When two consumers are joint obligors with primary liability on an obligation, the early disclosures required by § 1026.19(a), (e), or (g), as applicable, may be provided to any one of them. In rescindable transactions, the disclosures required by § 1026.19(f) must be given separately to each consumer who has the right to rescind under § 1026.23. In transactions that are not rescindable, the disclosures required by § 1026.19(f) may be provided to any consumer with primary liability on the obligation. See §§ 1026.2(a)(11), 1026.17(b), 1026.19(a), 1026.19(f), and 1026.23(b).

Since each consumer who has the right to rescind must receive the disclosure you need to provide in line with the 1026.19(f)(1)(ii)and(iii). Comment 1026.19(f)(1)(iii)-2 delivery rules which says:

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).

Delivery via email is assumed to comply with esign. Like with snail mail, the consumer is considered to have received the CD three business days after they are placed in the mail. If you received evidence that the the disclosures were received earlier than three business days after mailing(emailing) you can relay on that date.

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