The Consumer Financial Protection Bureau (“CFPB”) issued an interpretive rule (the “Rule”) regarding a consumer’s right to waive or modify certain timing requirements under the TILA-RESPA Integrated Disclosure (“TRID”) and Regulation Z’s right of rescission rules in light of the COVID-19 pandemic. While creditors are not required to inform consumers of their ability to waive or modify the timing requirements, the CFPB encourages creditors to consider volunteering this information.

Generally, under TRID, creditors must provide the consumer with the Loan Estimate no later than three business days before consummation of the transaction.  Under Regulation Z, consumers have at least three business days from consummation to rescind certain loans secured by their principal dwelling; for those transactions, creditors are required to provide consumers with notice informing them of this right.

The Rule concludes that if a consumer determines their financial needs due to the COVID-19 pandemic necessitate consummation before the end of the applicable waiting periods, then the consumer has a bona fide personal financial emergency permitting waiver of modification of the waiting periods under the applicable laws.

Interpretive Rule