DocMagic is releasing an update on June 13, 2022, to the DocMagic eSign platform that will create an automatic paper fulfillment process for Closing Disclosure and Pre-Closing packages for rescindable loans.
In addition to DocMagic’s current process of “print and mail” (paper) fulfillment for initial packages, the eSign platform is being updated to also automatically fulfill Closing Disclosure packages and Pre-Closing packages for rescindable loans based on the creation date of the request. By default, if a Closing Disclosure package or Pre-Closing package is not “received” by all applicable consumers on the same date that it is created, the system will automatically trigger the package for print fulfillment and mail it the following day. Note that the default setting for these two package types will require eSign consent to be obtained from all participants in the eSign event to satisfy the consent requirement.
This update to the eSign process will help ensure clients are complying with requirements of Regulation Z, which provides that a loan may not be consummated less than three business days after a Closing Disclosure is received by the consumer. For rescindable transactions, a Closing Disclosure is required to be provided to each consumer who has a right to rescind. For a refinance loan of a primary residence, each consumer who has an ownership interest or is subject to a security interest has a right to rescind the transaction and must be provided with a copy of the Closing Disclosure, including title only borrowers and non-title spouses.
The short period of time before the Closing Disclosure will trigger print fulfillment under this change is intended to assist lenders in ensuring a closing may occur according to their intended timeline. Users can request this be modified to a different time period for their packages or turned off entirely.
For loans that are not rescindable, a Closing Disclosure may be provided to any consumer with primary liability on a loan.
DocMagic has three available settings for eSign consent in most cases but this change will force the use of the “All Participants” setting for the Closing Disclosure and Pre-Closing packages for rescindable loans:
- Primary Borrower – Requires that eSign consent needs to be provided by the primary (1st borrower) for consent to be satisfied. Consent from any other participant will not satisfy the requirement.
- Any Participant – eSign consent can be satisfied by any one participant in the eSign event providing consent.
- All Participants – eSign consent needs to be obtained from all participants in the eSign event to satisfy the consent requirement.
If you have any questions, please about your account settings in DocMagic eSign, please contact DocMagic’s Customer Service Department.
