ALEXANDRIA, Va.–NCUA has sent a Regulatory Alert to credit unions encouraging them to advise any mortgage borrowers with a need to immediately access their funds that they have the option of forgoing waiting periods for some of the loans as a result of the coronavirus pandemic.
The Alert noted that in late April the CFPB issued an interpretative rule that consumers affected by the coronavirus pandemic can exercise their rights to modify or waive certain required waiting periods under the Truth in Lending Act/Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosure rule (TRID) and Regulation Z rescission rules.
NCUA said its interpretive rule “provides that the need to obtain funds and not delay closing for reasons related to the COVID-19 pandemic may be a ‘changed circumstance’ or ‘bona fide personal emergency,’ which would permit borrowers to waive waiting periods under both rules, or permit a credit union to amend some TRID documents.”
How to Act in Good Faith
“I encourage you to advise borrowers with a need for immediate access to funds of the right and manner to utilize these waiver provisions,” said NCUA Chairman Rodney Hood, who added the rule does not require credit unions to inform borrowers of their ability to forego the waiting periods.
Hood added the interpretive rule also provides that credit unions that make certain changes to disclosures for reasons related to the pandemic can still be considered to be acting in good faith under the TRID rule.