Also suggested are changes to the right of rescission, although that could be more complicated. The right of rescission is set by statute, which limits what the bureau can accomplish through regulation, Idziak said. But one area where clarity could help is the bona fide personal financial emergency waiver, which currently has no workable definition.
“A lot of lenders just say no such thing because we don’t know what it is and we don’t want you to come back, borrower, and claim that it really wasn’t a bona fide personal financial emergency,” he said. “If the bureau says, ‘Hey, lender, if the borrower tells you that there’s a bona fide personal financial emergency, you have a regulatory safe harbor if you agree to waive the rescission period and fund on the closing date.’ Some clarity there would be helpful.”
How to leave comments
Comments are due August 10, although Idziak said while stakeholders should not expect an extension, it is possible if there is enough industry pushback. The comment period, Idziak said, is shorter than CFPB TRID reviews of the past. Typically those have stayed open for 60 days, while this one is just 32 days.
“The short period indicates that the bureau already has some idea of where they want to go,” he said. “So it’s not a brainstorming session kind of thing. This is a, ‘We have an idea of where we want to go, and so help us either dissuade us or reinforce our ideas.’”
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