(a) Relation to other subparts in this part. The requirements and
limitations of this sub part are in addition to and not in lieu of
those contained in other subparts of this part.
(b) Form of disclosures. The creditor
shall make the disclosures required by this subpart clearly and conspicuously
in writing, in a form that the consumer may keep. The disclosures
required by this subpart may be provided to the consumer in electronic
form, subject to compliance with the consumer-consent and other applicable
provisions of the Electronic Signatures in Global and National Commerce
Act (E-Sign Act) (15 USC 7001 et seq.).
6-971.1
(c) Timing of disclosure.
(1) Disclosures for certain closed-end
home mortgages. The creditor shall furnish the disclosures required
by section 226.32 at least three business days prior to consummation
of a mortgage transaction covered by section 226.32.
(i) Change
in terms. After complying with paragraph (c)(1) of this section
and prior to consummation, if the creditor changes any term that makes
the disclosures inaccurate, new disclosures shall be provided in accordance
with the requirements of this subpart.
(ii) Telephone disclosures. A
creditor may provide new disclosures by telephone if the consumer
initiates the change and if, at consummation—
(A) the creditor
provides new written disclosures; and
(B) the consumer and creditor sign a statement
that the new disclosures were provided by telephone at least three
days prior to consummation.
(iii) Consumer’s
waiver of waiting period before consummation. The consumer may,
after receiving the disclosures required by paragraph (c)(1) of this
section, modify or waive the three-day waiting period between delivery
of those disclosures and consummation if the consumer determines that
the extension of credit is needed to meet a bona fide personal financial
emergency. To modify or waive the right, 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 entitled to the waiting period. Printed forms for
this purpose are prohibited, except when creditors are permitted to
use printed forms pursuant to section 226.23(e)(2).
(2) Disclosures for
reverse mortgages. The creditor shall furnish the disclosures
required by section 226.33 at least three business days prior to—
(i) consummation of a closed-end credit transaction; or
(ii) the first transaction
under an open-end credit plan.
6-971.2
(d) Basis of disclosures and use of estimates.
(1) Legal obligation. Disclosures shall reflect the terms of the
legal obligation between the parties.
(2) Estimates. If any information necessary for an accurate disclosure is unknown
to the creditor, the creditor shall make the disclosure based on the
best information reasonably available at the time the disclosure is
provided, and shall state clearly that the disclosure is an estimate.
(3) Per diem interest. For a transaction in
which a portion of the interest is determined on a per diem basis
and collected at consummation, any disclosure affected by the per
diem interest shall be considered accurate if the disclosure is based
on the information known to the creditor at the time that the disclosure
documents are prepared.
(e) Multiple creditors; multiple consumers. If a transaction involves more than one creditor, only one set of
disclosures shall be given and the creditors shall agree among themselves
which creditor must comply with the requirements that this part imposes
on any or all of them. If there is more than one consumer, the disclosures
may be made to any consumer who is primarily liable on the obligation.
If the transaction is rescindable under section 226.15
or section 226.23, however, the disclosures shall be made to each
consumer who has the right to rescind.
(f) Effect of subsequent events. If a disclosure
becomes inaccurate because of an event that occurs after the creditor
delivers the required disclosures, the inaccuracy is not a violation
of Regulation Z (12 CFR 226), although new disclosures may be required
for mortgages covered by section 226.32 under paragraph (c) of this
section, section 226.9(c), section 226.19, or section 226.20.
(g) Accuracy of annual percentage
rate. For purposes of section 226.32, the annual percentage rate
shall be considered accurate and may be used in determining whether
a transaction is covered by section 226.32, if it is accurate according
to the requirements and within the tolerances under 226.22. The finance-charge
tolerances for rescission under section 226.23(g) or (h) shall not
apply for this purpose.
