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#2145844 - 09/13/17 11:31 AM Closing Disclosure affected by power outage
FSLICBanker Offline
Member

Registered: 04/16/08
Posts: 56
Loc: North Carolina
Scenario: Bank A in the Southeast was in the path of Hurricane Irma remnants. Closing on Purchase Money Mortgage is scheduled for this Friday and bank emailed Closing Disclosure to applicant on Tuesday - consumer has consented to electronic delivery. Customer did not open document until today (Wednesday morning). Reg Z's 1026.19(f)(1) and 1026.38 (t)(3) seem to punt back to ESIGN on this issue. I'm trying to determine if this is a definite No Go, an issue to be considered under the written notice of bona fide personal emergency or some Act of God provision that I can't find in the regs at the present time. Thoughts?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2145851 - 09/13/17 12:14 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
rlcarey Online
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Registered: 07/16/01
Posts: 66648
Loc: Galveston, TX
Unless you have a receipt acknowledgement from the customer - anything E-Sign compliant follows the 3+3 rules whether the customer ever opens it or not. Investor rules may differ.

Since they acknowledged it today, that is when your three day clock starts. Saturday is the earliest you can close.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2145924 - 09/13/17 04:12 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
complyorelse Offline
Gold Star

Registered: 11/14/07
Posts: 289
Loc: U.S.
Same Hurricane Irma - different issue.

On a refi transaction that we closed last week, the disbursement date was 9/11. We were unable to open the bank on 9/11 as well as the bank being paid off and the title company, so the disbursement didn't occur until 9/12 when we reopened. The bank being paid off did not re-open until 9/13 and sent a revised payoff to the title company. The title company collected the additional funds from the borrower and the payoff occurred.

My question stems around how we are to handle the revised CD. My thought is the revised CD needs to have the disbursement date updated to 9/12 and the payoff amount adjusted accordingly.

Is this correct? Is there a place in the reg that addresses the situation? Thank you for any input.

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#2145927 - 09/13/17 04:13 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
RR Joker Offline
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Registered: 11/15/02
Posts: 19811
Loc: The Swamp
that would be the logical solution to me.
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My opinion only. Not legal advice.

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#2145936 - 09/13/17 04:25 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
complyorelse Offline
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Registered: 11/14/07
Posts: 289
Loc: U.S.
Thank you. It does seem logical to handle it just like any other scenario that would make a CD inaccurate after closing.

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#2145940 - 09/13/17 04:31 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 19811
Loc: The Swamp
I will say, however, that it would make me wonder if it would extend your ROR period based on the 'last of the 3 events' being receipt of the disclosure. Such a catch 22 because that would make the payoff change AGAIN!
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2145943 - 09/13/17 04:38 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
rlcarey Online
10K Club

Registered: 07/16/01
Posts: 66648
Loc: Galveston, TX
As long as you abide by the allowance and timing of a post-consummation corrected CD, I don't see that as extending the rescission period as the initial disclosure was based on all known facts at the time of issuance.

Otherwise you could get yourself into an infinite loop smile
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2145948 - 09/13/17 04:52 PM Re: Closing Disclosure affected by power outage [Re: FSLICBanker]
complyorelse Offline
Gold Star

Registered: 11/14/07
Posts: 289
Loc: U.S.
Thanks again!!

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