{"id":1922,"date":"2019-12-02T16:29:29","date_gmt":"2019-12-02T16:29:29","guid":{"rendered":"https:\/\/albanknews.com\/?p=1922"},"modified":"2019-12-02T16:29:29","modified_gmt":"2019-12-02T16:29:29","slug":"compliance-qa-cd-and-e-sign-consent","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=1922","title":{"rendered":"Compliance Q&A: CD and E-Sign Consent"},"content":{"rendered":"

Question:<\/strong><\/p>\n

We were written up for the initial CD being sent via e-disclosure to a borrower that did not have E-SIGN consent. I am saying that sending via email was not an option for the borrower.\u00a0 Is this correct? I did just look at the file and both borrowers did end up wet signing, but at the time of my review it only showed that it was sent via e-disclosure<\/p>\n

Answer:<\/strong><\/p>\n

Assuming the transaction is not rescindable, the CD can be provided to any consumer primarily liable on the obligation. As far as E-SIGN consent goes, the CD can be provided electronically\u00a0as long as\u00a0the bank has obtained E-SIGN consent from the consumer. From what you describe, it appears that E-SIGN consent was not obtained from the borrower prior to providing the CD electronically to the borrower, which would not have satisfied the disclosure provision requirements under TRID. However, the versions provided in person may have met these requirements\u00a0as long as\u00a0the bank can show these were actually received at least\u00a0three\u00a0 business\u00a0days before closing.<\/p>\n

If there is more than one consumer, the disclosures may be made to any consumer who is primarily liable on the obligation. If the transaction is rescindable under \u00a7\u00a0<\/em>1026.23,<\/em><\/a>\u00a0however, the disclosures shall be made to each consumer who has the right to rescind.<\/em>
\n12 CFR \u00a7 1026.17(d):\u00a0https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1026\/17\/#d<\/a><\/p>\n

In a transaction subject to paragraph (e)(1)(i) of this section, the creditor shall provide the consumer with the disclosures required under \u00a7\u00a0<\/em>1026.38<\/em><\/a>\u00a0reflecting the actual terms of the transaction.<\/em><\/p>\n

 <\/p>\n

12 CFR \u00a7 1026.19(f)(1)(i):\u00a0https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1026\/19\/#f-1-i<\/a><\/p>\n

The disclosures required by this section may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001\u00a0et seq.).<\/em><\/p>\n

12 CFR \u00a7 1026.38(t)(3)(iii):\u00a0https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1026\/38\/#t-3-iii<\/a><\/p>\n

 <\/p>\n

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