Can a borrower waive the redisclosure requirements under MDIA?
Yes, the borrower can waive the waiting periods under the MDIA “to meet a bona fide personal financial emergency.” The re-disclosures must still be provided; it is only the waiting period that can be waived. However, printed forms are not permitted to be used for waiver purposes. According to Reg. Z § 226.19(a)(3), it states: If the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may modify or waive the seven-business-day waiting period or the three-business-day waiting period required by paragraph (a)(2) of this section, after receiving the disclosures required by §226.18. To modify or waive a waiting period, 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 who are primarily liable on the legal obligation. Printed forms for this purpose are prohibited.
Related Questions
- Section III allows the borrower to waive the three-day requirement for receiving a copy of the appraisal. What is an acceptable procedure if the borrower chooses to waive the three-day requirement?
- What are the requirements of AIR Section III requiring borrower receipt of the appraisal?
- Can a borrower waive the redisclosure requirements under MDIA?
