With RESPA 2010 and MDIA regulations now in effect, being able to communicate quickly with borrowers to minimize waiting times has become more important than ever to mortgage lending institutions.  DocMagic's electronic delivery of disclosures through its eDisclosure product, with positive read-receipts, minimizes the waiting periods that are present when disclosures are delivered via U.S. Mail.  Currently, eDisclosure is available for PreDisclosure and Pre-Closing package types as well as individual documents via the Forms List.  However, beginning in July, 2010, DocMagic will extend its existing and widely-used eDisclosure delivery method to include the Application package type.

Extending eDisclosure to Application packages will help lenders establish an electronic communication channel with borrowers at the outset of the origination process.  If eDisclosure is used during the application stage, borrowers will be required to provide their affirmative consent to the electronic delivery process at application, in advance of providing the initial disclosures.  And, if affirmative consent is provided at application, this will enhance lenders' ability to provide the PreDisclosure and Pre-Closing packages electronically as consent will have been previously obtained.  (Borrowers can always withdraw their consent at any point in the origination process.  Every time electronic delivery of a loan package takes place, borrowers are required to authenticate their identity and demonstrate that they can view the documents in the package through DocMagic's "reasonable means" test.)  Use of eDisclosure from the application stage through pre-closing (for re-disclosure under MDIA) saves the lender money, and more importantly, can cut days out of the MDIA-mandated waiting periods.  To read more about MDIA, click here.

To facilitate the extension of eDisclosure to Application packages, DocMagic is changing the way RESPA timeframes will be deemed satisfied.  RESPA satisfaction will no longer be tied to the consent event, but rather, to the borrower(s)' viewing of the first version of the PreDisclosure package.  Note, however, that if the first time eDisclosure is used is for the PreDisclosure Package, the borrower(s) will need to provide their affirmative consent at that point. (Consent needs to be obtained before the borrower(s) can view ANY document package type via the eDisclosure process in order to satisfy the requirements of the ESIGN Act.)  Ideally, by tying the consent event to the first time that borrower(s) use eDisclosure, regardless of package type, the eDisclosure process is made more efficient and streamlined.