We are going round and round on the E-Sign requirements currently. We are wanting to be able to email out early disclosures/application packages and appraisal due to some of the upcoming changes. We are hung up on the the way we can prove the “demonstrable consent”. Below are the two option we were considering…in your opinion would we be in compliance with the consent?
Option 1: Email the customer the e-sign disclosure in the same format that we would send the loan documents. The customer would then open, print, sign, and return the disclosure to us.
Option 2: Have the customer sign a paper copy of the e-sign disclosure at the bank. Email them a copy of their signed disclosure in the same format that we would send the loans documents and have them email us back confirming that they received and were able to open the attachment. Emailed response would be printed and kept in file.
Another question is on the rentention issues. If we are able to print them a copy of the disclosure at anytime would this be sufficent for the rention rules. We scan all of our paper forms. We just wanted to make sure this didn’t mean we had to keep an electronic version available somewhere.
In my opinion number one would be questionable since the customer would not be consenting electronically. Number two sounds more in line with the requirements. I have heard some banks include a code or information within the initially emailed document that the customer must retrieve and email back to the bank in order to prove they can open and read the document.
Here’s a link to information from the FDIC’s exam manual: https://www.fdic.gov/regulations/compliance/manual/pdf/X-3.1.pdf.