Published on July 28, 2022
Written by The Servion Group
After all, it makes the overall mortgage process quicker and easier for all involved. However, obtaining the borrower’s consent to electronically receive documents must be done in a particular way to ensure compliance.
We’ve noticed that an increasing number of partners are asking borrowers for consent to e-sign, but they are not asking correctly. Specifically, partners are asking borrowers to physically sign a piece of paper stating that the borrower consents to receive and sign documents electronically. Or, partners are sending out disclosures electronically prior to obtaining the borrower’s consent.
The E-Sign Act requires that you send the e-sign consent request electronically and that you receive consent from the borrower electronically as well. By sending the consent request electronically and the borrowers confirming their consent in the same way, it proves that the borrowers can access information in electronic form.
Don’t forget: obtain consent electronically and then send the disclosures to them electronically. Don’t put the cart before the horse.