When a borrower consents to do business electronically and the loan pays off and at sometime in the future he applies for a new loan, do we have to get a new consent to do business electronically?
Does a promissory note have to be wet-signed, or is an e-signature acceptable?
Under TRID rules the bank must send a copy of the appraisal three days prior to closing the mortgage loan. If the appraisal is sent electronically but the customer has not opened the email, has the bank met the regulatory requirements?
Is it legally permissible to email a firm offer of credit?
If we have the customer sign-in to internet banking before submitting email requests such as address changes to a central location - Do we still need to implement E-Sign?
In search for further guidance on compliance for delivery of a Closing Disclosure (CD) by way of email (with a borrower's E-Sign consent) we have varying differences in the interpretation of the word "Receipt". It has been our department's practice to deliver the CD within no less than 3-business days prior to closing. Documentation to evidence delivery has been by including a printed copy of 1) email showing our department's delivery of the CD to the borrower by way of email, and/or 2) a printout showing the "Arrival Date" of the email/attachments to the borrower. Some have interpreted the "Receipt" rule as evidence the email and attachment(s) was "OPENED". Are we in violation if a loan is scheduled to close on a Monday and the borrower did not “OPEN” the email until the 2nd business day (Thursday) prior to closing – even though we have evidence to show “ARRIVAL” of our CD on or before the 3rd business day prior to closing?
I am doing some research around E-SIGN and its applicability to both compliance and the law. While I know we have members in different states, and each state is different and any case law or state law, mentioned may not be binding in our "home" state, I would still be interested in how other jurisdictions are handling this. What is your take on courts requesting original signature cards? We have an in-house collections department, that will go to court to file judgement on charged-off checking accounts or past due loans. In our local courthouse a certain judge has often asked our collections manager for the original signature card, when she is trying to obtain judgement. At our bank, customer signature cards can be obtained a number of different ways. The most common is via a digital topaz screen (electronic screen that the customer physically signs when they open a new account). There are some situations however where the customer can not come to the branch and sign, so we will go to the customer and have them sign a “wet” signature paper form, and then we come back to the branch and scan that paper form to our customer accounts team. I am trying to find out if that scanned wet signature will hold up in court as an original (since after it is scanned we destroy the paper copy). Additionally we have circumstances when the customer is out of area, or someone is opening a joint account where only one party is present in the branch and we send out the signature form electronically to the other party via email and they “remote E-sign” via a digital signature (which is just a printed version of their name). I am wondering if these will hold up in court? Furthermore, have you ever seen where a bank will allow customers to completely doc-u-sign/ remote E-SIGN a loan application and all associated closing documents? Even the big players in this space (Rocket mortgage, Quicken loans) usually send a mobile Notary once all the paperwork is completed to come meet with you and obtain a wet signature on the paperwork. Our mortgage department has asked if instead of that wet signature at closing if an electronic signature would suffice in the courts. What about Deeds of Trust, can they have electronic signatures? I really appreciate your help or any insight you can provide via your years in banking. If you find or know of any relevant case law please let me know as that would certainly help in my analysis.
Is there any reason why we are not allowed to have First Reserve/LOC statements and HELOC’s to be estatement?
In regards to the E-Sign Act my thought is that you were not allowed to send any forms to the customer by email if they didn't agree to E-Sign first. When selling a mortgage loan, can we provide the good-bye letter by email after post closing by email to let the customer know the loan is being transferred or would that be a violation of the Act?
We are trying to set up mortgage application online. We are having debates on what disclosures we need and how to provide the disclosures. Is it something as simple as sending a PDF or does it require us to follow E-SIGN? If the mortgage is submitted online, do the disclosures need to be sent online?