Many within the mortgage origination process understand the ECOA Appraisal Rule and the added importance of delivering their appraisal reports to the borrower on time, every time.
That said, there is another key mandate within ECOA that often gets overlooked – leaving your institution at risk. In addition to the timely delivery of an appraisal report, lenders must first “obtain the applicant’s consent [to receive an electronic copy of the document] under the Electronic Signatures in Global National Commerce Act (E-Sign Act).”
This means that whenever a lender delivers files to the borrower electronically (a.k.a. by email), the E-Sign Act, in accordance with ECOA, requires:
- The applicant’s consent to receive the document electronically.
- The applicant must be provided with an accurate statement of the hardware and software requirements for successful receipt of the electronic document.
- Confirmation that the applicant can download and view the PDF must be made prior to them downloading the document.
Valuation management technology, such as Global DMS’ eTrac® platform, helps to ensure these mandates are always met by providing automated notifications and process checks. For example, eTrac’s PDF Verification tool demonstrates a borrower’s ability to open and view the electronic PDF copy of the appraisal report and also shows their acknowledgment that they are both able and willing to view PDF documents.
In addition, all downloads initiated by the borrower are logged within eTrac for tracking and audit purposes to provide lenders with a permanent record of when they downloaded the appraisal report.