The Consumer Financial Protection Bureau issued an interpretive rule yesterday clarifying that, due to the COVID-19 emergency, consumers have a greater ability to exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA integrated disclosures and Regulation Z rescission rules. This action—which was advocated by the American Bankers Association—is intended to help consumers obtain access to mortgages quickly during the coronavirus pandemic. The interpretive rule takes effect upon publication in the Federal Register.
Borrowers who affirm, via a brief signed statement, that their financial situation due to the coronavirus pandemic necessitates a faster closing before the end of the TRID or Reg Z rescission waiting periods would be permitted to waive those waiting periods, the CFPB said. The rule also states that the pandemic is a “changed circumstance” for purposes of TRID’s fee disclosure tolerance provisions, which allows creditors to use revised estimates reflecting changes in settlement charges when determining good faith compliance.
Along with the interpretive rule, the CFPB also issued a set of FAQs addressing when creditors must provide appraisals or other written valuations to mortgage applicants in order to expedite access to credit for consumers affected by the pandemic. ABA is continuing to review the rule and will publish a staff analysis for bankers in the coming days.