Lending & the E-sign Rule

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Question:

If a borrower calls and wants a mortgage home loan, under the E-sign rules, could the Loan Officer e-mail the regulatory disclosures, Authorization certification, RESPA Servicing, Private Policy, and GFE/TIL to the consumer without first making the LO send an e-mail to the borrower for an electronic consent and have the borrower send it back?

Answer:

The documents you reference are all required to be delivered in writing. Therefore, to deliver them electronically, you have to first comply with the disclosure notice and demonstrable consent provisions of E-SIGN before sending only electronic. Alternatively, you can send electronically and follow up with mailed paper, and in that case, you would not need to be E-SIGN compliant because you are sending the paper as well.

First published on BankersOnline.com 5/11/09