Consumer Financial Protection

TILA-RESPA Integrated Disclosure Rule (TRID) and Regulation Z Right of Rescission Rules Changes Regulation Z

The CFPB issued an interpretive rule in response to the COVID-19 pandemic to clarify when consumers can elect to modify or waive certain required waiting periods for some mortgage loans. Specifically, the 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 TRID and Regulation Z, and permits credit unions to amend some TRID documents.

Regulation E, Remittance Transfer Rule Changes

While not the result of the COVID-19 pandemic, the Remittance Transfer Rule under Regulation E was recently changed to provide credit unions with regulatory relief. Specifically, the CFPB amended the rule to increase the safe harbor threshold, and permit institution to disclose estimates of certain fees and exchange rates if certain conditions are met.

Additionally, the CFPB previously provided a statutory temporary exception to the Remittance Transfer Rule’s requirement to disclose the exact costs of remittance transfers until July 21, 2020.

The CFPB issued a statement on April 10, 2020 in response to the COVID-19 pandemic, to inform remittance transfer providers of its flexible enforcement and supervisory approach to allow providers to focus their time and attention on ensuring that consumers have such access. Specifically, for remittances that occur on or after July 21, 2020, and before January 1, 2021, the CFPB indicated it does not intend to cite in an examination or initiate an enforcement action in connection with the disclosure of actual third-party fees and exchange rates after the temporary exception expires.

Last updated on June 30, 2020