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WASHINGTON-CUNA’s official comment letter stated that the exception for residential default and foreclosure notices in the E-SIGN law should only be removed if adequate consumer protections are maintained. According to CUNA Assistant General Counsel Jeffery Bloch, they currently are not. The letter to the National Telecommunications and Information Administration read, “Credit unions’ current ability to provide mortgages electronically has not been hampered by this exception with regard to these notices,” Bloch wrote. “As technology evolves, the ability to provide mortgages electronically may eventually be hampered if creditors are unable to deliver default or foreclosure notices electronically. At that time, it may be appropriate to revisit this issue and consider removing this exception to the E-Sign Act.” CUNA pointed out that there are no signs currently that technology has evolved to that point. “The negative consequence of not receiving a residential default or foreclosure notice, which would be the potential loss of the home, is potentially greater to a consumer than the consequence of not receiving other types of disclosures,” CUNA advocated. “At this time, we do not believe that traditional e-mail can provide the same assurances of delivery that is now provided by certified or registered mail. Traditional e-mail does not consistently afford the sender of the e-mail with the ability to confirm that the e-mail was delivered. Without sufficient proof of delivery, we believe that the use of e-mail at this time reduces consumer protection and is, therefore, inadequate.”

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