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Truth in Lending: 19(e)(3)(iv)(C) Revisions requested by the consumer.
1. Requirement. If the consumer requests revisions to the transaction that affect items disclosed pursuant to § 1026.19(e)(1)(i), and the creditor provides revised disclosures reflecting the consumer’s requested changes, the final disclosures are compared to the revised disclosures to determine whether the actual fee has increased above the estimated fee.
Truth in Lending: 19(e)(3)(iv)(D) Interest rate dependent charges.
1. Requirements.178 If the interest rate is not locked when the disclosures required by § 1026.19(e)(1)(i) are provided, then, no later than three business days after the date the interest rate is subsequently locked, § 1026.19(e)(3)(iv)(D) requires the creditor to provide a revised version of the disclosures required under § 1026.19(e)(1)(i) reflecting the revised interest rate, the points disclosed under § 1026.37(f)(1), lender credits, and any other interest rate dependent charges and terms.
Truth in Lending: 19(e)(3)(iv)(E) Expiration.
Editor’s Note180
Truth in Lending: 19(e)(3)(iv)(F) Delayed settlement date on a construction loan.
1. Requirements. A loan for the purchase of a home that has yet to be constructed, or a loan to purchase a home under construction (i.e., construction is currently underway), is a construction loan to build a home for the purposes of § 1026.19(e)(3)(iv)(F).
Truth in Lending: 19(e)(4)(i) General Rule.
Editor’s Note182
Truth in Lending: 19(f)(1)(i) Scope.
Editor’s Note184
Truth in Lending: 19(f)(1)(ii) Timing.
1. Timing. Except as provided in § 1026.19(f)(1)(ii)(B), (f)(2)(i), (f)(2)(iii), (f)(2)(iv), and (f)(2)(v), the disclosures required by § 1026.19(f)(1)(i) must be received by the consumer no later than three business days before consummation. For example, if consummation is scheduled for Thursday, the creditor satisfies this requirement by hand delivering the disclosures on Monday, assuming each weekday is a business day.
Truth in Lending: 19(f)(1)(iii) Receipt of disclosures.
1. Mail delivery. Section 1026.19(f)(1)(iii) provides that, if any disclosures required under § 1026.19(f)(1)(i) are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail. If the creditor delivers the disclosures required under § 1026.19(f)(1)(i) in person, consummation may occur any time on the third business day following delivery.
Truth in Lending: 19(f)(1)(iv) Consumer’s waiver of waiting period before consummation.
1. Modification or waiver. A consumer may modify or waive the right to the three-business-day waiting periods required by § 1026.19(f)(1)(ii)(A) or (f)(2)(ii) only after the creditor makes the disclosures required by § 1026.19(f)(1)(i). The consumer must have a bona fide personal financial emergency that necessitates consummating the credit transaction before the end of the waiting period. Whether these conditions are met is determined by the facts surrounding individual situations.
Truth in Lending: 19(f)(1)(v) Settlement agent.
1. Requirements. For purposes of § 1026.19(f), a settlement agent is the person conducting the settlement. A settlement agent may provide the disclosures required under § 1026.19(f)(1)(i) instead of the creditor.
Truth in Lending: 19(f)(2)(i) Changes before consummation not requiring a new waiting period.
1. Requirements. Under § 1026.19(f)(2)(i), if the disclosures provided under § 1026.19(f)(1)(i) become inaccurate before consummation, other than as provided under § 1026.19(f)(2)(ii), the creditor shall provide corrected disclosures reflecting any changed terms to the consumer so that the consumer receives the corrected disclosures at or before consummation.
Truth in Lending: 19(f)(2)(ii) Changes before consummation requiring a new waiting period.
1. Conditions for corrected disclosures. Pursuant to § 1026.19(f)(2)(ii), if, at the time of consummation, the annual percentage rate becomes inaccurate, the loan product changes, or a prepayment penalty is added to the transaction, the creditor must provide corrected disclosures with all changed terms so that the consumer receives them not later than the third business day before consummation.
Truth in Lending: 19(f)(2)(iii) Changes due to events occurring after consummation.
1. Requirements. Under § 1026.19(f)(2)(iii), if during the 30-day period following consummation, an event in connection with the settlement of the transaction occurs that causes the disclosures to become inaccurate, and such inaccuracy results in a change to an amount actually paid by the consumer from that amount disclosed under § 1026.19(f)(1)(i), the creditor shall deliver or place in the mail corrected disclosures not later than 30 days after receiving information sufficient to establish that such event has occurred.
Truth in Lending: 19(f)(2)(iv) Changes due to clerical errors.
1. Requirements. Section 1026.19(f)(2)(iv) requires the creditor to deliver or place in the mail corrected disclosures if the disclosures provided pursuant to § 1026.19(f)(1)(i) contain non-numeric clerical errors. An error is considered clerical if it does not affect a numerical disclosure and does not affect requirements imposed by § 1026.19(e) or (f).
Truth in Lending: 19(f)(2)(v) Refunds related to the good faith analysis.
1. Requirements.187 Section 1026.19(f)(2)(v) provides that, if amounts paid at consummation exceed the amounts specified under § 1026.19(e)(3)(i) or (ii), the creditor does not violate § 1026.19(e)(1)(i) if the creditor refunds the excess to the consumer no later than 60 days after consummation, and the creditor does not violate § 1026.19(f)(1)(i) if the creditor delivers or places in the mail disclosures corrected to reflect the refund of such excess no later than 60 days after consummation.
Truth in Lending: 19(f)(3)(i) Actual charge.
1. Requirements. Section 1026.19(f)(3)(i) provides the general rule that the amount imposed on the consumer for any settlement service shall not exceed the amount actually received by the settlement service provider for that service. Except as otherwise provided in § 1026.19(f)(3)(ii), a creditor violates § 1026.19(f)(3)(i) if the amount imposed upon the consumer exceeds the amount actually received by the service provider for that service.
Truth in Lending: 19(f)(3)(ii) Average charge.
1. Requirements. Average-charge pricing is the exception to the rule in § 1026.19(f)(3)(i) that consumers shall not pay more than the exact amount charged by a settlement service provider for the performance of that service. See comment 19(f)(3)(i)-1. If the creditor develops representative samples of specific settlement costs for a particular class of transactions, the creditor may charge the average cost for that settlement service instead of the actual cost for such transactions.
Truth in Lending: 19(f)(4)(i) Provision to seller.
1. Requirement.189 Section 1026.19(f)(4)(i) requires the settlement agent to provide the seller with the disclosures required under § 1026.38 that relate to the seller’s transaction reflecting the actual terms of the seller’s transaction.
Truth in Lending: 19(f)(4)(ii) Timing.
1. Requirement. Section 1026.19(f)(4)(ii) provides that the settlement agent shall provide the disclosures required under § 1026.19(f)(4)(i) no later than the day of consummation.
Truth in Lending: 19(g)(2) Permissible changes.
1. Reproduction. The special information booklet may be reproduced in any form, provided that no changes are made, except as otherwise provided under § 1026.19(g)(2). See also comment 19(g)(2)-3. Provision of the special information booklet as a part of a larger document does not satisfy the requirements of § 1026.19(g). Any color, size and quality of paper, type of print, and method of reproduction may be used so long as the booklet is clearly legible.
Truth in Lending: Amendment History
[65 Fed. Reg. 17,132 (Mar. 31, 2000); 66 Fed. Reg. 17,340 (Mar. 30, 2001); 69 Fed. Reg. 16,769 (Mar. 31, 2004); 72 Fed. Reg. 63,476 (Nov. 9, 2007); 72 Fed. Reg. 71,059 (Dec. 14, 2007); 73 Fed. Reg. 44,607 (July 30, 2008); 74 Fed. Reg. 23,302 (May 19, 2009); 76 Fed. Reg. 79,772 (Dec. 22, 2011); 78 Fed. Reg. 11,017 (Feb. 14, 2013); 78 Fed. Reg. 79,730 (Dec. 31, 2013); 80 Fed. Reg. 8767 (Feb. 19, 2015); 80 Fed. Reg. 43,911 (July 24, 2015); 82 Fed. Reg. 37,656 (Aug. 11, 2017); 83 Fed. Reg. 19,159 (May 2, 2018)]