- Business Rules
For electronic delivery of disclosures, after a borrower agrees to accept electronic delivery in compliance with the ESIGN Act must all disclosures be sent through an ESIGN compliant system, or can a lender email a scanned copy of a document through normal email? Can the borrower return the document by email as an attachment?There are a few issues to consider here: 1) E-Sign responsibilities under 15 USC 7001(c) consumer consent specifically applies to disclosures provided via electronic format and does not indicate an alternative disclosure method for subsequent disclosures provided via other means after consent has been received (other than the consumer rescinding the consent to receive disclosures electronically in which paper or other non-electric versions must be provided, or changes to your hardware or software prohibits access to retain the disclosure in which case the consumer would receive information on the updated hardware or software requirements); 2) concerns regarding privacy under Regulation P relative to protection of the consumer’s non-public personal information; and 3) state laws relative to privacy and security breaches.
Therefore, it would not be recommended to email disclosures to a consumer, nor receive disclosures back from the consumer, unless via an E-SIGN compliant solution, and/or particularly if the disclosures in question contain non-public personal information.
Citation(s): 15 USC 6801; 15 USC 7001(c); State Law
CFPB announcement regarding the delay of TRID
The full statement from CFPB Director Richard Cordray can be viewed here