Application of Certain Provisions in the TILA-RESPA Integrated Disclosure Rule and Regulation Z Right of Rescission Rules in Light of the COVID-19 Pandemic
The Bureau of Consumer Financial Protection (Bureau) is issuing this interpretive rule to provide guidance to creditors, loan originators, settlement agents, real estate appraisers, and other covered persons involved in the mortgage origination process.
The Bureau understands that the COVID-19 pandemic could pose temporary business disruptions and challenges for these covered persons. The Bureau also recognizes that consumers may have acute needs for proceeds from mortgage transactions and uncertainty about the origination process. The Bureau has received questions and requests for clarification from stakeholders about the application of certain provisions in the TILA-RESPA Integrated Disclosure (TRID) Rule and Regulation Z’s right of rescission rules (Regulation Z Rescission Rules) in light of the pandemic.
The Bureau concludes that if a consumer determines that his or her need to obtain funds due to the pandemic (1) necessitates consummating the transaction before the end of a TRID Rule waiting period or (2) must be met before the end of the Regulation Z Rescission Rules waiting period, then the consumer has a bona fide personal financial emergency that would permit the consumer to utilize the modification and waiver provisions, subject to the TRID and Regulation Z Rescissions Rules’ applicable procedures. The Bureau also concludes that the pandemic is a “changed circumstance” for purposes of the TRID Rule, allowing creditors to use revised estimates reflecting changes in settlement charges for purposes of determining good faith. This interpretive rule will help expedite consumers’ access to credit under the TRID and Regulation Z Rescission Rules.