August 24, 2014

Bahhur on closing disclosure timing in Compliance Blog

Aug. 8, 2014 – NAFCU Director of Regulatory Compliance JiJi Bahhur looked at the timing and delivery requirements applicable to the Truth in Lending Act/Real Estate Settlement Procedures Act (TILA/RESPA) mortgage closing disclosure taking effect next August in this week's Compliance Blog.

Bahhur has been covering aspects of the new TILA/RESPA rule, which will be implemented on Aug. 1, 2015, in multiple entries on the Compliance Blog and the Compliance Monitor. In this entry, she covered issues such as when the consumer must receive the closing disclosure and how the creditor must arrange these deliveries to ensure receipt by the consumer.

Bahhur also discussed how to handle situations where there is more than one consumer and when a consumer can waive or modify the three-business day waiting period. "After receiving the closing disclosure, the consumer has the ability to waive or modify the three-business-day waiting period if he or she determines that the extension of credit is needed to meet a bona fide personal financial emergency," Bahhur explains. "Whether a bona fide personal financial emergency exists is determined by the facts surrounding individual situations."

Also in the blog entry, Bahhur reviews definitions such as "business day" and explains that for purposes of the rule the definition differs from the closing disclosure to the loan estimate.