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#2270639 - 05/19/22 02:41 PM Re: Waiting period waiver bean2
raitchjay Offline
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That list isn't coming from the CFPB or the prudential regulators is it?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2270642 - 05/19/22 02:54 PM Re: Waiting period waiver bean2
rlcarey Online
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Push comes to shove is that there is absolutely no upside for the bank to waive any Regulation Z waiting period. There is only a downside, as when things go wrong later-on, and you are sued by the consumer for a violation of their rights. We had a hard and fast rule, unless a tornado went through and someone needed money for a new roof, a house was being foreclosed on, or some baby was starving to death, you did not waive waiting periods.

But everyone is free to make their own bed in which they sleep.
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#2270643 - 05/19/22 02:57 PM Re: Waiting period waiver bean2
RR Joker Offline
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No, it's basically an ad for savings accounts.
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#2270644 - 05/19/22 03:03 PM Re: Waiting period waiver bean2
RR Joker Offline
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"unless a tornado went through and some need money for a new roof"

This can easily be solved by a tarp in most cases....maybe if the entire roof came off wink But most roofers don't require full payment up front either. So, I would not consider this a financial emergency.

Perspective.

This kid stands to lose a substantial amount of savings he has put up in good faith and put trust in the people representing him. Why should he suffer for their ineptness over 1 less day for a disclosure that is already in line with the estimate given. IF we had known about this change, we would have had it out the day before...we didn't. We thought we had until 06/03 to approve and close.
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#2270646 - 05/19/22 03:07 PM Re: Waiting period waiver bean2
rlcarey Online
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Your bed RR.
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#2270648 - 05/19/22 03:14 PM Re: Waiting period waiver bean2
Dan Persfull Offline
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Not money already put out in good faith.

But they agreed to the changes in the purchase contract therefore the changes were also made in good faith...saying the buyers were clueless would not be a very strong defense in court to convince a judge the delay was a financial emergency on the buyer's behalf that warranted waiving their consumer protection rights. I don't think an examiner would agree either if the situation came up in an exam.

It sounds like you have already made up you mind so as mentioned, if it is a risk the bank is willing to take....
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#2270649 - 05/19/22 03:24 PM Re: Waiting period waiver bean2
bean2 Offline
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Posts: 73
The consumer has "determined" they have a bona fide financial emergency. Wouldn't the lender be protected with the consumers signed statement, based on the rule?

The consumer may, after receiving the disclosures required by this paragraph (c)(1), modify or waive the three-day waiting period between delivery of those disclosures and consummation or account opening if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the waiting period, and bears the signature of all the consumers entitled to the waiting period. Printed forms for this purpose are prohibited, except[u][/u]

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#2270652 - 05/19/22 03:47 PM Re: Waiting period waiver bean2
Dan Persfull Offline
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Not IMO.

Official Interpretation
19(a)(3) Consumer's Waiver of Waiting Period Before Consummation
1. Modification or waiver. A consumer may modify or waive the right to a waiting period required by §1026.19(a)(2) only after the creditor makes the disclosures required by §1026.18. The consumer must have a bona fide personal financial emergency that necessitates consummating the credit transaction before the end of the waiting period.


What personal emergency are they experiencing? What emergency caused the delay?
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#2270654 - 05/19/22 03:49 PM Re: Waiting period waiver bean2
Dan Persfull Offline
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Remember you are agreeing to waive the consumer's rights under the consumer protection laws. The bank has the responsibility to be sure their waiver is for legitimate reasons.
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#2270665 - 05/19/22 07:16 PM Re: Waiting period waiver bean2
RR Joker Offline
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If I were the consumer and I had done everything I was supposed to do to get my loan approved and I had spent thousands of dollars to do so, then it would be a financial emergency to me not to lose said money and potentially have to save for years and years again to buy something else. My suspicion lies with the agent and seller holding this info from us until two days before adjusted closing. If I were the buyer, I'd not have signed this agreement to begin with, but he did. Lesson learned.

Sorry, but closing one day shy of 3 to prevent his loss from happening seems like an acceptable risk I can take and sleep at night.
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#2270786 - 05/23/22 07:54 PM Re: Waiting period waiver bean2
John Burnett Offline
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RR - Don't apologize for your difference of opinion. Opinion or belief is the very linchpin of this "bona fide personal financial emergency" concept. The creditor gets the unenviable job of deciding whether the consumer's claim to a bona fide personal financial emergency is, in fact, bona fide, and whether the creditor will tolerate the risk of being wrong and having the consumer later sue the creditor for accepting the waiver.

If I were in your shoes, I would likely not accept the waiver. But you and your bank are the closest to the parties in this deal.
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#2270828 - 05/24/22 06:12 PM Re: Waiting period waiver bean2
RR Joker Offline
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Turned out that the seller relented once they realized the buyer was seriously about to obtain legal representation and we were able to extend the contract a week smile

We have a happy buyer and were able to stay within normal timing. YAY!
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#2270849 - 05/24/22 09:31 PM Re: Waiting period waiver bean2
raitchjay Offline
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OK
I like that ending. smile
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#2270882 - 05/25/22 05:19 PM Re: Waiting period waiver bean2
RR Joker Offline
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Me too!
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