DocMagic is making an update to the consent requirements for the Adverse Action Package. Currently, DocMagic has an account-level configuration option for who is required to consent before a package is considered complete in eSign, or before it will trigger print fulfillment of the package.
We provide three options for this configuration, “Primary”, “Any”, or “All”. This setting applies to all packages the lender produces under their account.
- Primary – it only takes the initial person with primary liability on the loan (a borrower) to satisfy consent requirements. This is similar to the “primary borrower” but specifically means the first borrower in the list. This is the DocMagic default if no option is selected by the customer.
- Any – it only takes one person to satisfy consent. This is based on the general regulatory provisions that allows disclosures to be provided to only one person with primary liability on the loan to satisfy disclosure to all borrowers. See, for example, 12 C.F.R. 1026.17(d.
- All – this setting requires all borrowers to consent before the consent requirement is satisfied.
As mentioned, this setting is currently an account-level setting that would apply to all packages. DocMagic recently made an update to automatically require “All” for CD packages on rescindable loans as all persons are required to receive material disclosures on such loans three days before closing.
After a review of the requirements of the Fair Credit Reporting Act (“FCRA”) and the Equal Credit Opportunity Act (“ECOA”), and their implementing regulations, which govern adverse action disclosures, DocMagic is making an update to the consent requirements for this package. While Regulation B, the implementing regulation for ECOA, allows for delivery of an adverse action notice to one consumer to satisfy delivery requirements for all consumers, FCRA still requires each consumer receive their individual disclosure. As a result, DocMagic will be updating the consent requirements for the Adverse Action Package only, to default to a requirement of “All”.
After this change, the Adverse Action Package will automatically require all borrowers to consent before consent is satisfied, which if it is not satisfied, will cause the package to be printed and mailed to all borrowers. DocMagic will be updating the Adverse Action Package to always require All to consent. If not all borrowers consent after 3 days from creation of the package, and the customer has indicated to use DocMagic for print fulfillment, the package will automatically expire and be fulfilled by DocMagic’s In House Fulfillment team on the next available mailing day.
This update will go into effect on September 1, 2022. Please contact the Compliance department with any questions.
