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Reply To: Reg B Appraisal Rules – E-Sign

#5205
rcooper
Member

E-sign only applies to disclosures to consumers. That being said, the Reg B valuation delivery rule doesn’t clarify that point. There are differing opinions out there on whether the e-sign rules should be followed for business applicants covered by this part. The conservative approach is to comply with e-sign for all applicants. The preamble to the rule states: “The Bureau believes that it is appropriate to allow creditors to provide applicants with copies of appraisals and other written valuations in electronic form if the applicant consents to receiving the copies in such form[,]” and then goes on to discuss compliance with e-sign. Since e-sign only only applies to consumers then one could reason that all that needs to be done for a business applicant is to obtain consent. Because of this, at the least, I recommend obtaining consent from the business applicant stating that they authorize electronic delivery.