Q: We have two consumers applying for a mortgage jointly and have provided the same email address for each applicant. The bank complies with TRID disclosures electronically, how should the bank ensure that each consumer received the disclosure, since the email addresses are the same (does the bank email each disclosure twice or require two confirmations?)
A: Regulation Z, § 1026.17(d) and Commentary 2 govern disclosures to multiple consumers. When two consumers are joint obligors with primarily liability on an obligation, the disclosures can be given to either one of them if the bank chooses. Merely being a guarantor or surety to the loan does not require the consumer to receive the disclosures. It is always important to remember any internal policy or investor requirements as this may differ. The Regulation does require each consumer to receive disclosures when: (1) the transaction is subject to the right of rescission; and (2) each consumer must receive the disclosures who has a right to rescind. Therefore, for a transaction that is not subject to a right of rescission, it is sufficient that the primary applicant confirms receipt of the disclosure.
It is always important to remember E-Sign requirements when complying with providing TRID disclosures electronically. Compliance Alliance’s E-Sign toolkit is very helpful to assist with those obligations: https://compliancealliance.com/find-a-tool/by-toolkit/e-sign.
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