Current through Reg. 49, No. 52; December 27, 2024
An equity loan may not be closed before one business day
after the date that the owner of the homestead receives a copy of the loan
application, if not previously provided, and a final itemized disclosure of the
actual fees, points, interest, costs, and charges that will be charged at
closing. If a bona fide emergency or another good cause exists and the lender
obtains the written consent of the owner, the lender may provide the preclosing
disclosure to the owner or the lender may modify the previously provided
preclosing disclosure on the date of closing.
(1) For purposes of this section, the
"preclosing disclosure" consists of a copy of the loan application, if not
previously provided, and a final itemized disclosure of the actual fees,
points, interest, costs, and charges that will be charged at closing.
(2) The copy of the loan application
submitted to the owner in satisfaction of the preclosing disclosure requirement
must be the most current version at the time the document is delivered. The
lender is not obligated to provide another copy of the loan application if the
only difference from the version previously provided to the owner is
formatting. The lender is not obligated to give another copy of the loan
application if the information contained on the more recent application is the
same as that contained on the application of which the owner has a
copy.
(3) The lender must deliver
to the owner a final itemized disclosure of the actual fees, points, interest,
costs, and charges that will be charged at closing.
(A) For a closed-end equity loan, the lender
may satisfy this requirement by delivering a properly completed closing
disclosure under Regulation Z,
RSA
1026.19(f) and §
RSA
1026.38.
(B) For a home equity line of credit, the
lender may satisfy this requirement by delivering properly completed
account-opening disclosures under Regulation Z,
RSA
1026.6(a).
(4) The lender may
provide the preclosing disclosure electronically in accordance with state and
federal law governing electronic signatures and delivery of electronic
documents. The UETA and the E-Sign Act include requirements for electronic
signatures and delivery.
(5) Bona
fide emergency.
(A) An owner may consent to
receive the preclosing disclosure or a modification of the preclosing
disclosure on the date of closing in the case of a bona fide emergency
occurring before the date of the extension of credit. An equity loan secured by
a homestead in an area designated by Federal Emergency Management Agency (FEMA)
as a disaster area is an example of a bona fide emergency if the homestead was
damaged during FEMA's declared incident period.
(B) To document a bona fide emergency
modification, the lender should obtain a written statement from the owner that:
(i) describes the emergency;
(ii) specifically states that the owner
consents to receive the preclosing disclosure or a modification of the
preclosing disclosure on the date of closing;
(iii) bears the signature of all of the
owners entitled to receive the preclosing disclosure; and
(iv) affirms the owner has received notice of
the owner's right to receive a final itemized disclosure containing all actual
fees, points, costs, and charges one day prior to closing.
(6) Good cause. An owner may
consent to receive the preclosing disclosure or a modification of the
preclosing disclosure on the date of closing if another good cause exists.
(A) Good cause to modify the preclosing
disclosure or to receive a subsequent disclosure modifying the preclosing
disclosure on the date of closing may only be established by the owner.
(i) The term "good cause" as used in this
section means a legitimate or justifiable reason, such as financial impact or
an adverse consequence.
(ii) At the
owner's election, a good cause to modify the preclosing disclosure may be
established if:
(I) the modification does not
create a material adverse financial consequence to the owner; or
(II) a delay in the closing would create an
adverse consequence to the owner.
(iii) The term "de minimis" as used in this
section means a very small or insignificant amount.
(B) At the owner's election, a de minimis
good cause standard may be presumed if:
(i)
the total actual disclosed fees, costs, points, and charges on the date of
closing do not exceed in the aggregate more than the greater of $100 or 0.125
percent of the principal amount of the loan (e.g.0.125 percent on a $80,000
principal loan amount equals $100) from the initial preclosing disclosure;
and
(ii) no itemized fee, cost,
point, or charge exceeds more than the greater of $100 or 0.125 percent of the
principal amount of the loan than the amount disclosed in the initial
preclosing disclosure.
(C) To document a good cause modification of
the disclosure, the lender should obtain a written statement from the owner
that:
(i) describes the good cause;
(ii) specifically states that the owner
consents to receive the preclosing disclosure on the date of closing;
(iii) bears the signature of all of the
owners entitled to receive the preclosing disclosure; and
(iv) affirms the owner has received notice of
the owner's right to receive a final itemized disclosure containing all fees,
costs, points, or charges one day prior to closing.
(7) An equity loan may be closed
at any time during normal business hours on the next business day following the
calendar day on which the owner receives the preclosing disclosure or any
calendar day thereafter.
(8) The
owner maintains the right of rescission under Section 50(a)(6)(Q)(viii) even if
the owner exercises an emergency or good cause modification of the preclosing
disclosure.
