Does a waiver have to be in the customer's handwriting? In reading the smal entity guide and the reg, I think that is the intent, but a major vendor provided a form.

Where in the CFPB small entity guide do you pull that the waiver has to be in a customer's handwriting? I'm assuming you aren't strictly talking just the signature either, correct?

The small entity guide states that, "You can accept an oral or written statement from an applicant. For example you can obtain a waiver from an applicant through an email, a phone call, or some other means." Technically you do not even need a hard copy waiver form let alone a signature or handwritten waiver but it's best to be on the conservative side and have a form/waiver with standard language that the client signs.

I interpret the language "You can accept" as they have to provide not "you give them a form". While I agree, the waiver can be verbal or written, I don't think the intent was to put a form in front of them and get a signature to waive a requirement.

I see this question popping up in the rare case in which an appraisal is late, and it won't be received by the lender in time for a copy to be placed in the mail 6 business days before closing. Lender calls the borrower, informs her of the problem, and says we will have delay the closing to allow us to get you the copy at least three days before closing. Borrower offers to pick it up, but lender doesn't think the copy will be available on the 3rd BD before closing.

If the loan is a non QM-HPML, the closing will have to be delayed. But if it isn't an HPML or is a QM the Reg B waiver is available, and the borrower can grant it over the phone.

Thank you for your response John, but I am wondering if the FI should provide a waiver form for the applicant to use or if it should be in the applicant's own writing or spontaneous notes from a lender documenting a conversation?

There is no prohibition on using a preprinted form for this purpose. A cautionary note: You don't ever want to see such a form in blank at a closing or signed at a closing.

Ok, thanks!

One of our processors was at a seminar recently and some other bankers were saying they planned to provide a waiver form at application...I don't think that will be acceptable. Seems like it could be criticized as trying to avoid the requirement. Anybody else feel the same way?

John, should this say "If the loan IS a non QM-HPML, the closing will have to be delayed."?

Not John, but waivers are not permitted on non-QM HPMLs, I'm pretty sure.

Right - I think he just typed it wrong, but I wanted to make sure in case others were referring to his response and didn't realize it.

Yes. Mea culpa. I have corrected my misstatement. Sometimes the keyboard and the brain aren't connected as tightly as they should be.

Anybody having the waiver form provided at application and letting the applicant choose to waive or not waive?

Common in the secondary market. I've heard of it being preferred by investors. Not saying it's right.

We are planning to provide the disclosure in situations where it will be impossible to provide the appraisal/valuation within 3 days of closing (i.e. 7 day purchase). It just doesn't seem logical to provide the waiver and then if the transaction tests as an HPML, pull it back.

However, we are checking to see if our investors are expecting it with initial disclosures. If yes, we may have to include it upfront.

I'd be interested in hearing what your investors say after you speak with them.

Interested in hearing what the guru's say about providing the waiver with early disclosures when you know the situation will be impossible to provide the appraisal/valuation within 3 business days of closing. For some transactions, this is a normal process, 7 days from application to closing.