eSignature for disclosures

Table of Contents

1. Introduction
2. Disclosures
3. Prepare and Send Disclosures via Lender Platform
1. Preparing the Disclosures
2. Sending the Disclosures
4. Helpful Resources
5. Troubleshooting

Introduction 

For the purposes of this article, Initial Disclosures (“Disclosures”) refer to the following four documents:

1. Borrower Authorization to Obtain Credit Report
2. Borrower Consent and Authorization for Electronic Disclosures
3. Notice of Right to Receive Copies of Appraisal Report
4. USA Patriot Act Notice - (does not need to be signed)

These Disclosures must be executed by the appropriate signees for your loan to progress to the Qualified status.

How It Works

Disclosures 

To comply with federal law, PeerStreet requires borrowers to sign certain Disclosures in connection with the origination of wholesale loans (i.e., Table Funding or Funding into Origination). Any individual whose credit will be pulled should sign an authorization. See Underwriting Guidelines for credit pull requirements.

1. Borrower Authorization to Obtain Credit Report - By signing this document, the signer authorizes you or PeerStreet to pull credit on any loan specified as part of the Subject Property Address.
   
   Important: For multi-collateral loans, borrowers must list all properties connected to the loan.
   
   
2. Borrower Consent and Authorization for Electronic Disclosures - By signing this document, the signer agrees to receive and read electronic communications. This document must be signed electronically utilizing an e-signature software approved by PeerStreet.
   
   
3. Notice of Right to Receive Copies of Appraisal Report - By signing this document, the signer agrees to waive the requirement to receive a copy of the appraisal 3 days prior to closing. The signer will still receive a copy of the appraisal prior to close though it may not be 3 days prior to close.
   
   
4. USA Patriot Act Notice - This notice states that the applicant’s identity will be verified to combat terrorism and money laundering activities. No signature is required.

Prepare and Send Disclosures via Lender Platform

You can send the Disclosures to signers directly via Lender Platform’s new Disclosure feature. The feature simplifies the process for collecting the documents and ensures that signers satisfy all PeerStreet requirements.

You can access the feature by going into any loan and clicking the “Prepare Disclosures” button in Loan Details.

Preparing the Disclosures

Before sending the disclosures, we will need you to provide us with the following information:

1. Note Origination - We need to send a different version of the Disclosures depending on whether the loan is Table Funding or Funding Into Origination. There is no mention of PeerStreet in the Table Funding version.
   
   
2. Current Lender Entity / Brokering Entity - In these Disclosures, the borrower is granting consent for pulling credit and for receiving important notices about the loan via digital communication. The Disclosures not only grant PeerStreet but also grant you, the primary broker, consent as well. This requires that we include your legal entity name.
3. Phone and Email - In the Borrower Consent and Authorization for Electronic Disclosures, borrowers are directed to contact you for anything related to the loan via this phone number and email address.

Sending the Disclosures

Any individual whose credit will be pulled should sign. If the borrower is an entity, all guarantors must sign. If the borrower is not an entity, then all individuals must sign. 

For each recipient, assign a 6-digit passcode for signers to access the Disclosures. Share the code with signers via phone or text message instead of email to help protect your recipient’s privacy. You can view the passcode assigned to each recipient in the Signature Request tab once you’ve sent the disclosures.

Signers will receive a request to e-sign the Disclosures via email. Each recipient will receive a separate email. Signers will receive a generic email from [e-mail] and the subject line of the email will be: “[Your Account Name] sent you Initial Disclosures to sign.” (See screenshot below for an example). 

Signers will be signing documents via PandaDoc’s platform and will not see any mention of PeerStreet. A copy of the documents that they are signing can be found here. Once executed, signers will be able to download the signed document directly from PandaDocs.

The signed documents will also be automatically uploaded to the Documents tab of the loan the request was made on. If Disclosure tasks are present on a loan, the documents will be automatically associated with the respective tasks.

Helpful Resources

You can review the status of your signature requests in the new Signature Request tab. You’ll find a list of all recipients and the status of the request (Draft, Sent, Viewed, Completed, Voided). Requests are automatically voided 10 days after Disclosures are sent to the recipient.

Troubleshooting

My borrower cannot find the email request. What should I do?

1. First, double-check that the signer email was entered correctly. You can do so by reviewing the recipient addresses in the Signature Requests tab for the loan.
   
   
2. If the signer email is correct, have signers check their spam or junk folders for the email. The email will be sent by [e-mail].
   
   
3. If the issue is still not resolved, prepare and send a new request to your signer.