Question: What happens when changes occur at the last minute?
Under the new rules, a change can trigger a new Closing Disclosure and a new three day waiting period if any of the following events occur between the time the Closing Disclosure was provided and the date of consummation (loan document signing):
- Changes to the APR greater than 1/8 of a percent (or 1/4 of a percent for loans with irregular payments or periods) that cause the disclosures to become inaccurate.
- Changes to the loan product that cause the disclosure to become inaccurate.
- The addition of a prepayment penalty, causing the disclosure to become inaccurate.
The additional three-business-day waiting period after the revised Closing Disclosure is subject to a consumer's written waiver for a bona fide financial emergency.
Not all changes to the information in the Closing Disclosure require a restart of the waiting period. For less significant changes than those described above, the lender may provide the consumer with an updated Closing Disclosure at or before the closing reflecting such changes.
Question: Who is responsible for delivering the Closing Disclosure to the Consumer?
Delivery of the CD to the Consumer is the legal obligation of the Creditor.
- Creditor is to ensure the CD meets content, delivery and timing requirements
- Creditor may deliver the CD as follows:
Provide to consumer in person - considered received on the day provided.
Mail or other delivery methods, including email. Considered received three business days after placed in the mail or delivered, unless creditor can evidence earlier receipt.
Creditors may use electronic delivery methods with consumer consent and other provisions of the Electronic Signatures in Global and National Commerce Act (ESIGN)