Compliance Blog

Nov 07, 2012

Mortgage Periodic Statements & The E-SIGN Act: Part 3

Written by Steve Van Beek

Yesterday we blogged further on mortgage periodic statements and the E-SIGN Act.  We noted that the CFPB's mortgage servicing proposal could change when it is finalized.  In fact, the CFPB specifically asked for comments on the delivery of mortgage statements electronically.  As we noted yesterday, NAFCU supported electronic delivery in our comment letter.

Well, this section of the CFPB's proposed rule is actually a very interesting read - including this portion:

"The Bureau seeks comment as to whether additional requirements should be placed on when a consumer consents to receiving electronic statements. For example, must consent be obtained or confirmed electronically in a manner that demonstrates that the consumer is able to access information electronically? The Bureau also seeks comment on whether consumers who already receive electronic statements should be deemed as having consented to receive statements electronically. Additionally, the Bureau seeks comment on whether consumers who have auto-debit set up to deduct payments from their bank account should be deemed as having consented to receive statements electronically."  (Emphasis added).

As this paragraph indicates, the CFPB is looking at a wide range of options and solicited comments from interested parties.  The CFPB is looking for comments on whether the full E-SIGN Act consent process should apply regardless of the plain language of Dodd-Frank and TILA.  They are also seeking comments on whether a member's past consent to electronic statements - such as for their credit card or checking account statements - should be sufficient evidence to allow credit unions to send the mortgage periodic statement to existing members.  Additionally, that last option of electronic payments equaling consent for electronic statements is certainly an interesting approach.   

Again - it will be very interesting to see how the CFPB analyzes the comment letters from all interested parties and what the final rule will look like.  We'll know by January 21, 2013. Â