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The primary legal requirement brokers must know regarding e-disclosures is that borrowers must consent to receive their disclosures electronically. If you don't receive this consent, you must use paper documents.
When deciding how to fulfill disclosure obligations, there are a few considerations to keep in mind. The most important is compliance. A disclosure system -- be it paper-based or electronic -- must comply with all federal, state and investor requirements. In the case of e-disclosures, brokers should make sure the proper forms will be delivered in the correct format at the right time.
A compliance failure can result in lawsuits, trouble with regulators, and loss of time and money. Having a trusted disclosure-provider can remove the burden of keeping up with compliance updates and let brokers focus on their customers.
Now is the time to make sure your disclosure processes promote compliance with new government regulations and with lender demands. E-disclosures can help while also reducing paper costs and closing-table delays.
Scott K. Stucky is chief operating officer at DocuTech Inc., based in Idaho Falls, Idaho. Since 1991, DocuTech has provided compliance services and documentation technology for the mortgage industry. DocuTech's software interfaces with leading loan-origination systems and enables mortgage professionals to generate documents locally.
DocuTech manages and secures all information needed for a loan, guaranteeing accuracy, security and compliance. Reach Stucky at email@example.com.
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