Steve H. Powell & Company

  • Contact
  • About us
  • Management
  • Services
    • Loan Review
    • Compliance
    • Due Diligence
    • ALLL Methodology
    • Strategic Planning
  • Newsletter
  • Blog
  • Contact
  • About us
  • Management
  • Services
    • Loan Review
    • Compliance
    • Due Diligence
    • ALLL Methodology
    • Strategic Planning
  • Newsletter
  • Blog

​

CFPB Consumer Mortgage Relief

5/14/2020

0 Comments

 
By James Moore, CRCM

The CFPB (Consumer Financial Protection Bureau) has recently issued an interpretive rule under Regulation Z for TRID and Right of Rescission waiting period requirements.  Under the TRID Rule, creditors generally must deliver or place in the mail the Loan Estimate to consumers no later than seven business days before consummation and consumers must receive the Closing Disclosure no later than three business days before consummation. The Regulation Z Rescission Rules also provide consumers with at least three business days from consummation to rescind certain credit obligations secured by the consumer’s principal dwelling, and creditors are required to provide consumers with a disclosure informing them of this rescission right. Under the TRID Rule and the  Regulation Z Rescission Rules, however, after receiving the required disclosure(s), a consumer may modify or waive these waiting periods if the consumer determines that he or she needs credit extended to meet a bona fide personal financial emergency.  

Under the interpretive rule, the CFPB has determined that the COVID-19 pandemic could be considered a bona fide personal financial emergency for affected consumers.  This is not a change in the regulation but clarification that COVID-19 may be a reason to waive timing requirements if a personal financial emergency has occurred such as job loss or quarantine.  The rules still require for the waiting periods to be modified or waived, the creditor must have a dated written statement by the consumer that: (1) describes the emergency, (2) specifically modifies or waives the waiting period, and (3) bears the signature of all consumers who are primarily liable on the legal obligation (for the TRID Rule) or who are entitled to rescind (for the Regulation Z Rescission Rules). 

In addition, the CFPB recognized that the pandemic may also create valid changed circumstances in some instances that would permit a creditor to provide revised disclosures to consumers to reset tolerances for closing costs.  Financial institutions should use caution and document why the pandemic caused the changed circumstance and deliver revised disclosures within three business days of learning of the changed circumstance in accordance with established TRID requirements.
​
The CFPB’s interpretive rule can be found here:
https://files.consumerfinance.gov/f/documents/cfpb_tila-respa-integrated-disclosure_rescission-pandemic-interpretive-rule.pdf
0 Comments



Leave a Reply.

    Past Articles

    All
    2017 DBF Final Rulemaking
    2017 TRID Final
    2017 Updated Guide For Servicing Rules
    2018 Compliance Updates
    April 2018 TRID Rule
    Beneficial Ownership Relief Extension
    Cashing Checks
    CFPB Annual Privacy Notice
    CFPB Prepaid Account Rule
    Commercial Real Estate
    CRA Lobby Notice
    CRE Concentrations
    Final Arbitration Rules
    FinCEN Finalizes Beneficial Ownership Relief
    HMDA Proposed Changes
    New HMDA Interpretive Rule
    Reg CC Reminder
    Regulation CC Final
    Restoration Of PTFA
    Rising Interest Rates Reg E
    SARs Data Fields
    SARs On Cyber Crime
    Second FAQs For Beneficial Ownership
    The Military Lending Act
    Visa Gross Negligence Change
    Visa & MasterCard Card Updater Services

    Archives

    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    July 2021
    May 2021
    February 2021
    January 2021
    October 2020
    August 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    March 2019
    January 2019
    September 2018
    August 2018
    June 2018
    May 2018
    April 2018
    February 2018
    January 2018
    October 2017
    August 2017
    July 2017
    June 2017
    March 2017
    February 2017
    October 2016
    September 2016
    August 2016
    June 2016

    RSS Feed

Powered by Create your own unique website with customizable templates.