[rcooper]

Question from our recent webinar, Pandemic Relief – Managing Compliance Issues:
If customer gives you a hand-written waiver for disclosures, can it be a general waiver, waiving the timing of all disclosures or must it be specific to each type of waiver – rescission, HMPL, TRID, etc.?

[rcooper]

One waiver could technically satisfy multiple disclosure requirements if the respective requirement allows for a waiver (HMPL appraisal rule does not) and doesn’t prohibit a combined waiver. However, it may not be as easy as it seems as each rule waived would have to be considered independently. First, the waiver for the Regulation B valuation rule would need to be obtained before the TRID and rescission waivers because the valuation is required to be given “promptly upon completion” or three business days before closing, whichever is earlier; the waiver would need to be obtained early in the loan process. Second, the TRID and rescission waiver should not be obtained until after the respective disclosures are provided. Finally, the waiver for TRID and rescission would need to be in writing and describe the bona fide personal financial emergency of the borrower. Also, any combined waiver must list all of the disclosures/rights the borrower is waiving to ensure the borrower knows/intends to waive their rights under each respective rule.

[Author]

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