In the wake of Hurricane Ida, which caused damage and flooding from Louisiana all the way to New York, the CFPB sent a message to its e-mail subscribers reminding them of its 2018 Supervisory Policy Statement Regarding Financial Institutions and Consumers Affected by a Major Disaster or Emergency and consumer resources webpage for disasters.
The 2018 Supervisory Policy Statement (SPS) provides information on existing flexibilities within laws and regulations, which can help credit unions to better assist their members who have been impacted. The SPS also states that “the Bureaus will also consider the impact of major disasters or emergencies on supervised entities themselves when conducting supervisory activities,” which can also help relieve some of the pressure on the financial institutions.
The specific regulatory guidance includes examples of flexibilities that can be found within Regulations B (ECOA), X (RESPA), and Z (TILA).
Regulation B allows a consumer to waive the requirement that a creditor must provide applicants for first-lien loans on a dwelling with copies of appraisals and other written valuations upon completion or three business days prior to consummation, or upon account opening. A waiver of this timing requirement allows potential expedited access to credit secured by a first-lien on a dwelling for members who were impacted by a disaster or emergency.
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