The Consumer Financial Protection Bureau has issued clarifications to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic.
The CFPB is issuing an interpretive rule 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. The agency also said the COVID-19 pandemic qualifies as a “changed circumstance” for purposes of certain TRID provisions, allowing creditors to use revised estimates reflecting changes in settlement charges for purposes of determining good faith.
Since Reg Z doesn’t require lenders to inform consumers of their ability to use those modification and waiver provisions, however, the bureau “encourages creditors to consider voluntarily informing consumers during the COVID-19 pandemic of their ability to utilize.”
The bureau also issued an FAQ document that addresses when creditors must provide appraisals or other written valuations to mortgage applicants in order to expedite access to credit for consumers affected by the COVID-19 pandemic.
“The steps we are taking today will help consumers facing financial emergencies obtain access to mortgage credit faster,” said CFPB Director Kathleen L. Kraninger. “The pandemic is resulting in consumers facing various challenges, and our temporary and targeted solutions are intended to ensure that consumers receive the credit they need in a timely manner.”