The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule Wednesday clarifying that consumers can exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA Integrated Disclosure Rule and Regulation Z rescission rules.
CUNA raised this issue to the CFPB in multiple letters, and CUNA President/CEO Jim Nussle spoke with CFPB Director Kathy Kraninger on this and other ways the bureau could provide regulatory flexibility.
“Thanks to the CFPB for today’s action that will help to ensure credit unions can continue to swiftly process members’ critical financial transactions during the pandemic,” Nussle said.
Today’s interpretive rule states that if a consumer determines that his or her need to obtain funds due to the COVID-19 pandemic necessitates consummating the transaction before the end of the TRID waiting periods or must be met before the end of the Regulation Z Rescission Rules waiting period, then the consumer has a bona fide personal financial emergency and can use certain modification and waiver provisions. The interpretive rule also states that the COVID-19 pandemic is a “changed circumstance” for purposes of certain TRID Rule provisions, allowing creditors to use revised estimates reflecting changes in settlement charges for purposes of determining good faith.
The Bureau also issued an FAQ document that addresses when creditors must provide appraisals or other written valuations to mortgage applicants under the ECOA Valuations Rule for consumers affected by the COVID-19 pandemic.