A lender emails consumer mortgage disclosures that must legally be provided in writing and are subject to E-SIGN section 101(c), with no special exception. The borrower only agreed by telephone to electronic delivery and never consented or confirmed consent electronically. Does that verbal agreement alone satisfy the electronic-consent requirement?
Correct Answer
B) Deficient: the consent must be given or confirmed electronically
B. The required electronic consent or confirmation is missing. The process must reasonably demonstrate access to the electronic format used. The required advance statements include delivery options, withdrawal procedures and access requirements. Scope and exceptions: This is not a rule that all email requires E-SIGN consent. Disclosure timing and content duties remain unchanged; defective electronic consent does not alone invalidate the underlying contract. Source: 15 USC 7001(c)(1)–(3), (6), 2023 edition — https://www.govinfo.gov/content/pkg/USCODE-2023-title15/html/USCODE-2023-title15-chap96-subchapI-sec7001.htm
Why This Is the Correct Answer
B. The required electronic consent or confirmation is missing. The process must reasonably demonstrate access to the electronic format used. The required advance statements include delivery options, withdrawal procedures and access requirements. Scope and exceptions: This is not a rule that all email requires E-SIGN consent. Disclosure timing and content duties remain unchanged; defective electronic consent does not alone invalidate the underlying contract.
Why the Other Options Are Wrong
Option A: Sufficient: consent is implied once the borrower opens 1 email
Merely opening an email is not affirmative compliant consent.
Option C: Deficient: consent must be given on paper and wet-signed first
The statute does not require an initial wet-signed paper consent.
Option D: Sufficient: a recorded telephone consent is a valid E-SIGN consent
Recording the phone call does not by itself satisfy the ordinary rule.
Exam Tip
Distinguish agreement to email from the required consent-and-access process.
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