Unknown. Interpretive rule

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--- schema: federal-register doc_type: fedreg source_file: FR-2020-05-04.xml --- 85 86 Monday, May 4, 2020 Contents Agency Health Agency for Healthcare Research and Quality NOTICES Request for Nominations: Members of the National Advisory Council for Healthcare Research and Quality, 26472-26473 2020-09450 Agriculture Agriculture Department NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26440-26441 2020-09418 2020-09423 Consumer Financial Protection Bureau of Consumer Financial Protection RULES Application of Certain Provisions in the TILA-RESPA Integrated Disclosure Rule and Regulation Z Right of Rescission Rules in Light of the COVID-19 Pandemic, 26319-26321 2020-09515 Centers Disease Centers for Disease Control and Prevention NOTICES Meetings:

Advisory Board on Radiation and Worker Health, 26474-26475 2020-09400 Advisory Committee on Immunization Practices, 26473-26474 2020-09403 Centers Medicare Centers for Medicare & Medicaid Services PROPOSED RULES Coordinating Care From Out-of-State Providers for Medicaid-Eligible Children With Medically Complex Conditions, 26438 2020-09392 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26479-26480 2020-09452 Medicare Program: Application From the Compliance Team for Initial CMS Approval of its Home Infusion Therapy Accreditation Program, 26477-26479 2020-09393 Meetings:

Medicare Program; Medicare Advisory Panel on Clinical Diagnostic Laboratory Tests, 26480-26482 2020-09391 Medicare Program; New and Reconsidered Clinical Diagnostic Laboratory Test Codes for the Clinical Laboratory Fee Schedule for Calendar Year 2021, 26475-26477 2020-09390 Children Children and Families Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Generic Clearance for Reviewer Recruitment Forms, 26482 2020-09354 Runaway and Homeless Youth Homeless Management Information System, 26482-26483 2020-09458 Civil Rights Civil Rights Commission NOTICES Meetings;

Sunshine Act, 26441 2020-09381 Coast Guard Coast Guard RULES Drawbridge Operations: Hackensack River, Jersey City, NJ, 26358-26359 2020-08806 Safety Zones: Monongahela River Mile Marker 76.6, Pittsburgh, PA, 26359-26361 2020-08975 Special Local Regulations: Tred Avon River, Between Bellevue and Oxford, MD, 26355-26358 2020-09082 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Commodity Futures Commodity Futures Trading Commission PROPOSED RULES Amendments To Compliance Requirements for Commodity Pool Operators on Form CPO-PQR, 26378-26413 2020-08496 Defense Department Defense Department RULES Double Coverage, 26355 2020-08664 Education Department Education Department NOTICES Applications for New Awards:

Education Research and Special Education Research Grant Programs, 26445-26450 2020-09446 Employee Benefits Employee Benefits Security Administration RULES Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak, 26351-26355 2020-09399 Energy Department Energy Department See Federal Energy Regulatory Commission PROPOSED RULES Energy Conservation Program: Test Procedure for Battery Chargers, 26369-26374 2020-08852 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Energy Priorities and Allocations System, 26450 2020-09445 Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: New Mexico; Interstate Transport Requirements for the 2008 Ozone National Ambient Air Quality Standards, 26361-26364 2020-08518 PROPOSED RULES Air Quality State Implementation Plans; Approvals and Promulgations: Kentucky; Jefferson County Existing and New Miscellaneous Metal Parts and Products Surface Coating Operations, 26418-26419 2020-08905 Significant New Use Rules on Certain Chemical Substances, 26419-26438 2020-08714 NOTICES Cancellation Order for Certain Pesticide Registrations and Amendments To Terminate Uses, 26457-26461 2020-09456 Meetings:

Pesticide Program Dialogue Committee, 26461-26462 2020-09413 Toxic Substances Control Act Science Advisory Committee on Chemicals; Perchloroethylene, Draft TSCA Risk Evaluation, 26464-26466 2020-09369 Pesticide Registration Review: Draft Human Health and/or Ecological Risk Assessments for Several Pesticides, 26462-26463 2020-09453 Draft Human Health and/or Ecological Risk Assessments for Several Rodenticides, 26456-26457 2020-09455 Equal Equal Employment Opportunity Commission NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Demographic Information on Applicants for Federal Employment, 26466-26469 2020-09377 Federal Aviation Federal Aviation Administration RULES Relief for Certain Persons and Operations During the Coronavirus Disease 2019 (COVID-19) Outbreak, 26326-26350 2020-09472 PROPOSED RULES Airworthiness Directives: De Havilland Aircraft of Canada Limited (Type Certificate Previously Held by Bombardier, Inc.) Airplanes; Withdrawal, 26374-26375 2020-09113 Honeywell International Inc.

Turbofan Engines, 26375-26378 2020-09287 NOTICES Meetings: Drone Advisory Committee, 26516 2020-09394 Federal Bureau Federal Bureau of Investigation NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals National Use-of-Force Data Collection, 26493-26495 2020-09360 Federal Communications Federal Communications Commission RULES Cable Television Technical and Operational Standards, 26364-26365 2020-07583 PROPOSED RULES Human Exposure to Radiofrequency Electromagnetic Fields;

Correction, 26438-26439 2020-08738 NOTICES Preliminary Cost Category Schedule for 3.7-4.2 GHz Band Relocation Expenses, 26469-26470 2020-09496 Federal Energy Federal Energy Regulatory Commission NOTICES Application: Brighton Hydroelectric Project, 26454 2020-09436 Combined Filings, 26451-26452, 26455-26456 2020-09438 2020-09440 2020-09442 Environmental Assessments; Availability, etc.: PacifiCorp, 26455 2020-09434 Initial Market-Based Rate Filings Including Requests for Blanket Section 204 Authorizations:

Mechanicsville Solar, LLC, 26454-26455 2020-09439 Northern Colorado Wind Energy Center, LLC, 26453-26454 2020-09443 Records Governing Off-the-Record Communications, 26452-26453 2020-09441 Request Under Blanket Authorization: Gulf South Pipeline Co., LLC, 26450-26451 2020-09433 Schedule for Environmental Review: Enable Gas Transmission, LLC, Enable Gulf Run Transmission; Gulf Run and Line CP Modifications Project, 26453 2020-09431 Federal Motor Federal Motor Carrier Safety Administration NOTICES Registration and Financial Security Requirements for Brokers of Property and Freight Forwarders:

Small Business in Transportation Coalition

(SBTC)Exemption Application, 26516-26517 2020-09467 Federal Trade Federal Trade Commission NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26470-26472 2020-09379 Food and Drug Food and Drug Administration RULES Guidance: Classification of Posterior Cervical Screw Systems: Small Entity Compliance Guide, 26350-26351 2020-09188 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 26520-26521 2020-09359 Health and Human Health and Human Services Department See Agency for Healthcare Research and Quality See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Children and Families Administration See Food and Drug Administration See Health Resources and Services Administration See National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26485 2020-09470 Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Be the Match Patient Support Center Survey, 26483-26484 2020-09417 Homeland Homeland Security Department See Coast Guard See U.S. Citizenship and Immigration Services See U.S. Customs and Border Protection Indian Affairs Indian Affairs Bureau NOTICES Helping Expedite and Advance Responsible Tribal Homeownership Act Approval of Pueblo of Laguna Leasing Code, 26491-26492 2020-09386 Helping Expedite and Advance Responsible Tribal Homeownership Act Approval of Shingle Springs Band of Miwok Indians, Shingle Springs Rancheria (Verona Tract), California Business Leasing Code, 26490-26491 2020-09385 National Tribal Broadband Grant; Extension of Application Deadline, 26492 2020-09388 Proclaiming Certain Lands as Reservation for the Sault Ste. Marie Tribe of Chippewa Indians of Michigan, 26489 2020-09387 Interior Interior Department See Indian Affairs Bureau See Surface Mining Reclamation and Enforcement Office Internal Revenue Internal Revenue Service RULES Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak, 26351-26355 2020-09399 International Trade Adm International Trade Administration NOTICES Meetings: Department of Commerce Trade Finance Advisory Council, 26442 2020-09389 Quarterly Update to Annual Listing of Foreign Government Subsidies on Articles of Cheese Subject to an In-Quota Rate of Duty, 26441-26442 2020-09406 International Trade Com International Trade Commission NOTICES Investigations; Determinations, Modifications, and Rulings, etc.: Certain Portable Gaming Console Systems With Attachable Handheld Controllers and Components Thereof II, 26492-26493 2020-09425 Justice Department Justice Department See Federal Bureau of Investigation See Juvenile Justice and Delinquency Prevention Office NOTICES Proposed Consent Decree: Clean Air Act, 26495 2020-09426 Juvenile Juvenile Justice and Delinquency Prevention Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals National Training and Technical Assistance Center Feedback Form Package, 26495-26496 2020-09361 Labor Department Labor Department See Employee Benefits Security Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Agricultural Recruitment System Forms Affecting Migratory Farm Workers, 26499 2020-09410 Benefits Timeliness and Quality Review System, 26496-26497 2020-09366 Construction Fall Protection Systems Criteria, Practices, and Training Requirements, 26497-26498 2020-09411 Job Corps Health Questionnaire, 26496 2020-09412 Nonmonetary Determination Activity Report, 26498 2020-09365 Pre-Implementation Planning Checklist Report for State Unemployment Insurance Information Technology Modernization Projects, 26498-26499 2020-09367 Management Management and Budget Office NOTICES Revisions to Uniform Freedom of Information Act Fee Schedule and Guidelines, 26499-26500 2020-09432 National Archives National Archives and Records Administration NOTICES General Records Schedule Transmittal 31, 26500-26502 2020-09352 National Council National Council on Disability NOTICES Meetings; Sunshine Act; Correction, 26502 2020-09364 National Highway National Highway Traffic Safety Administration NOTICES Denial of Motor Vehicle Defect Petition, DP16-002, 26519-26520 2020-09430 Denial of Petition for a Defect Investigation, 26517-26519 2020-09429 National Institute National Institutes of Health NOTICES Meetings: Center for Scientific Review, 26485-26486 2020-09356 Interagency Pain Research Coordinating Committee, 26487 2020-09404 National Institute of Nursing Research, 26486 2020-09405 National Institute on Aging, 26486-26487 2020-09355 2020-09358 Office of the Director, 26486 2020-09357 Office of the Secretary, 26487 2020-09362 National Oceanic National Oceanic and Atmospheric Administration RULES Atlantic Highly Migratory Species: Atlantic Bluefin Tuna Fisheries, 26365-26368 2020-09420 NOTICES Charter Renewal: Marine Fisheries Advisory Committee, 26444-26445 2020-09380 Meetings: New England Fishery Management Council, 26443 2020-09382 Pacific Fishery Management Council, 26443, 26445 2020-09384 2020-09471 Review of Nomination for Chumash Heritage National Marine Sanctuary, 26443-26444 2020-09109 Nuclear Regulatory Nuclear Regulatory Commission RULES American Society of Mechanical Engineers 2015-2017 Code Editions Incorporation by Reference, 26540-26581 2020-08855 NOTICES Meetings; Sunshine Act, 26502 2020-09614 Presidential Documents Presidential Documents PROCLAMATIONS Special Observances: Asian American and Pacific Islander Heritage Month (Proc. 10016), 26583-26586 2020-09642 Jewish American Heritage Month (Proc. 10017), 26587-26588 2020-09643 Law Day, U.S.A. (Proc. 10018), 26589-26590 2020-09644 EXECUTIVE ORDERS Armed Forces, U.S.; Ordering the Selected Reserve to Active Duty (EO 13919), 26591-26592 2020-09645 Bulk-Power System, U.S.; Efforts To Secure (EO 13920), 26593-26599 2020-09695 Securities Securities and Exchange Commission NOTICES Application: First Trust Series Fund, et. al., 26507-26508 2020-09378 Meetings; Sunshine Act, 26506-26507 2020-09560 2020-09626 2020-09529 Self-Regulatory Organizations; Proposed Rule Changes: Financial Industry Regulatory Authority, Inc., 26502-26506 2020-09374 NYSE Arca, Inc., 26508-26513 2020-09372 2020-09375 Small Business Small Business Administration RULES Business Loan Program Temporary Changes: Paycheck Protection Program: Requirements; Corporate Groups and Non-Bank and Non-Insured Depository Institution Lenders, 26324-26326 2020-09576 Paycheck Protection Program: Requirements; Disbursements, 26321-26324 2020-09398 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 26513-26516 2020-09428 2020-09448 2020-09454 2020-09457 2020-09459 Surface Mining Surface Mining Reclamation and Enforcement Office PROPOSED RULES Ohio Regulatory Program, 26413-26418 2020-08805 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See National Highway Traffic Safety Administration Treasury Treasury Department See Foreign Assets Control Office See Internal Revenue Service NOTICES Privacy Act; Systems of Records, 26521-26538 2020-09435 U.S. Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals Application for Civil Surgeon Designation, 26488-26489 2020-09371 Customs U.S. Customs and Border Protection NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application and Approval to Manipulate, Examine, Sample or Transfer Goods, 26487-26488 2020-09419 Separate Parts In This Issue Part II Nuclear Regulatory Commission, 26540-26581 2020-08855 Part III Presidential Documents, 26583-26592 2020-09642 2020-09643 2020-09644 2020-09645 Part IV Presidential Documents, 26593-26599 2020-09695 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 85 86 Monday, May 4, 2020 Rules and Regulations BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 Application of Certain Provisions in the TILA-RESPA Integrated Disclosure Rule and Regulation Z Right of Rescission Rules in Light of the COVID-19 Pandemic AGENCY: Bureau of Consumer Financial Protection. ACTION: Interpretive rule. SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is issuing this interpretive rule to provide guidance to creditors and other covered persons involved in the mortgage origination process. The Bureau understands that the COVID-19 pandemic could pose temporary business disruptions and challenges for covered persons that are involved in the mortgage origination process, including creditors, loan originators, settlement agents, and other parties such as real estate appraisers. The Bureau recognizes, furthermore, that consumers may have acute needs for proceeds from mortgage transactions as well as uncertainty and confusion about the origination process. In recent weeks, the Bureau has received a number of questions and requests for clarification from stakeholders, including creditors, industry representatives, and State regulators, about the application of certain provisions in the TILA-RESPA Integrated Disclosure

(TRID)Rule and Regulation Z's right of rescission rules (Regulation Z Rescission Rules) in light of the COVID-19 pandemic. The Bureau concludes in this interpretive rule that if a consumer determines that his or her need to obtain funds due to the COVID-19 pandemic

(1)necessitates consummating the credit transaction before the end of the TRID Rule waiting periods or

(2)must be met before the end of the Regulation Z Rescission Rules waiting period, then the consumer has a bona fide personal financial emergency that would permit the consumer to utilize the modification and waiver provisions, subject to the applicable procedures set forth in the TRID Rule and Regulation Z Rescission Rules. The Bureau also concludes in this interpretive rule that the COVID-19 pandemic is a “changed circumstance” for purposes of certain TRID Rule provisions, allowing creditors to use revised estimates reflecting changes in settlement charges for purposes of determining good faith. This interpretive rule will help expedite consumers' access to credit under the TRID Rule and Regulation Z Rescission Rules. DATES: This interpretive rule is effective on May 4, 2020. FOR FURTHER INFORMATION CONTACT: Michael G. Silver, Senior Counsel, Office of Regulations,

(202)435-7700, or *https://reginquiries.consumerfinance.gov/.* If you require this document in an alternative electronic format, please contact *CFPB_Accessibility@cfpb.gov.* SUPPLEMENTARY INFORMATION: I. Discussion A. Background The Bureau recognizes the serious impact the COVID-19 pandemic is having on many consumers and on the operations of many entities, including those involved in the mortgage origination process, and the challenges of this unique and rapidly evolving situation. The Bureau understands that the current crisis is causing temporary business disruptions and is creating challenges for some businesses involved in the mortgage origination process, including creditors, mortgage loan originators, settlement agents, and other parties such as real estate appraisers. The difficulties some businesses are facing include operational and staffing challenges in processing loan applications, estimating mortgage transaction costs, delivering disclosures, providing third party services relating to mortgage origination, and closing loans. The Bureau understands that these difficulties also are affecting some other entities, such as county recorders' offices, that provide information relating to the costs of mortgage transactions or otherwise play a role in the mortgage origination process. The Bureau recognizes, furthermore, that due to the impacts of the COVID-19 pandemic, some consumers have an acute need for proceeds from mortgage transactions as well as uncertainty or confusion about the origination process. Some consumers are seeking to refinance their homes quickly to obtain funds to meet financial needs that are due to the COVID-19 pandemic. The timely good-faith estimates of mortgage transaction costs under the TRID Rule and the disclosures under the Regulation Z Rescission Rules along with their corresponding waiting periods, the provisions for which are described in more detail in part I.B, facilitate prudent consumer decision-making. Providing these estimates and disclosures along with their corresponding waiting periods under the general legal standards in these rules, however, may result in delay in the transactions of some consumers seeking to respond to emergency conditions. However, the TRID Rule and Regulation Z Rescission Rules include provisions intended to provide regulatory flexibility in certain circumstances. This interpretive rule is intended to spotlight and clarify these provisions for consumers and mortgage origination businesses so that they can take advantage of these provisions during the COVID-19 pandemic. The TRID Rule (which is codified in Regulation Z) and the Regulation Z Rescission Rules implement the Truth in Lending Act (TILA). 1 The TRID Rule imposes certain disclosure requirements and waiting periods related to mortgage transactions. 2 The Regulation Z Rescission Rules provide consumers with the right to rescind certain credit transactions secured by their principal dwelling. 3 The Regulation Z Rescission Rules also impose waiting periods. 1 12 U.S.C. 1601 *et seq.* 2 *See* 12 CFR 1026.19(e) and (f). 3 *See* 12 CFR 1026.15, 1026.23. In recent weeks, the Bureau has received a number of questions and requests for clarification from stakeholders, including creditors, industry representatives, and State regulators, about these provisions and their application in light of the COVID-19 pandemic. Given the challenges posed by the current crisis, the Bureau is issuing this interpretive rule to provide guidance to covered persons that must comply with the TRID Rule or the Regulation Z Rescission Rules. The Bureau continues to seek stakeholder feedback and evaluate whether the Bureau should provide any additional guidance about the application of the laws and regulations under the Bureau's purview pertaining to the mortgage origination process in light of the COVID-19 pandemic. B. Specific Guidance Regarding the TRID Rule and the Regulation Z Rescission Rules in Light of the COVID-19 Pandemic 1. Bona Fide Personal Financial Emergency Under the TRID Rule, creditors generally must deliver or place in the mail the Loan Estimate to consumers no later than seven business days before consummation and consumers must receive the Closing Disclosure no later than three business days before consummation. 4 The Regulation Z Rescission Rules also provide consumers with at least three business days from consummation to rescind certain credit obligations secured by the consumer's principal dwelling, and creditors are required to provide consumers with a disclosure informing them of this rescission right. 5 Under the TRID Rule and the Regulation Z Rescission Rules, however, after receiving the required disclosure(s), a consumer may modify or waive these waiting periods if the consumer determines that he or she needs credit extended to meet a bona fide personal financial emergency. 6 For the waiting periods to be modified or waived, the creditor must have a dated written statement by the consumer that:

(1)Describes the emergency,

(2)specifically modifies or waives the waiting period, and

(3)bears the signature of all consumers who are primarily liable on the legal obligation (for the TRID Rule) or who are entitled to rescind (for the Regulation Z Rescission Rules). 7 Commentary to the TRID Rule modification and waiver provisions clarifies that “[t]he consumer must have a bona fide personal financial emergency that necessitates consummating the credit transaction before the end of the waiting period.” The commentary also clarifies that whether these conditions are met is determined by the facts or circumstances of individual situations, and provides one example. 8 Commentary to the Regulation Z Rescission Rules waiver provision similarly clarifies that for a consumer to waive the rescission waiting period, “the consumer must have a bona fide personal financial emergency that must be met before the end of the rescission period.” 9 4 12 CFR 1026.19(e)(1)(iii)(B), 1026.19(f)(1)(ii)(A). Section 1026.19(f)(2)(ii) also provides for a corrected Closing Disclosure and additional three-day waiting period if certain changes are made before consummation, which is subject to the TRID Rule modification and waiver provisions described below. 12 CFR 1026.19(f)(2)(ii). 5 12 CFR 1026.15(a), 1026.23(a). These Regulation Z provisions implement the statutory rescission right provisions in TILA section 125. *See* 12 U.S.C. 1635. The rescission right generally applies to refinancings and other non-purchase credit transactions (subject to certain limitations), but not to residential mortgage transactions ( *i.e.,* where a security interest is created or retained in the consumer's principal dwelling to finance the acquisition or initial construction of that dwelling, as defined in § 1026.2(a)(24)). *See* 12 CFR 1026.23(f). *See also* 12 CFR 1026.15(f). 6 12 CFR 1026.15(e); 12 CFR 1026.19(e)(1)(v), (f)(1)(iv); 12 CFR 1026.23(e). *See also* 12 CFR 1026.19(a)(3). The modification and waiver provisions in the TRID Rule and the Regulation Z Rescission Rules implement the statutory provisions in TILA sections 128(b)(2)(F) and 125(d). *See* 12 U.S.C. 1638(b)(2)(F), 12 U.S.C. 1635(d). 7 12 CFR 1026.15(e); 12 CFR 1026.19(e)(1)(v), (f)(1)(iv); 12 CFR 1026.23(e). *See also* 12 CFR 1026.19(a)(3). 8 *See* comments 19(e)(1)(v)-1, 19(f)(1)(iv)-1 (“The imminent sale of the consumer's home at foreclosure, where the foreclosure sale will proceed unless loan proceeds are made available to the consumer during the waiting period, is one example of a bona fide personal financial emergency.”); *see also* comment 19(a)(3)-1. 9 Comment 23(e)-1. Comment 23(e)-2 also clarifies that, “To waive or modify the right to rescind, the consumer must give a written statement that specifically waives or modifies the right, and also includes a brief description of the emergency.” Unlike the TRID Rule, the commentary to 12 CFR 1026.23(e) does not include any examples of what circumstances constitute a bona fide personal financial emergency. *See also* comment 15(e)-2. On September 14, 2018, the Bureau issued its “Statement on Supervisory Practices Regarding Financial Institutions and Consumers Affected by a Major Disaster or Emergency” (2018 Supervisory Statement). The 2018 Supervisory Statement explained that Regulation Z provides that consumers may waive or modify the timing requirements described above if necessary to meet a bona fide personal financial emergency and that this “regulatory flexibility can help expedite access to credit for consumers facing a bona fide personal financial emergency following a major disaster or emergency.” 10 10 Bureau of Consumer Financial Protection, “Statement on Supervisory Practices Regarding Financial Institutions and Consumers Affected by a Major Disaster or Emergency,” Sept. 14, 2018, *available at: https://files.consumerfinance.gov/f/documents/bcfp_statement-on-supervisory-practices_disaster-emergency.pdf* . The Bureau recognizes that a consumer's need to obtain funds due to the COVID-19 pandemic can similarly create a bona fide personal financial emergency. The Bureau is responding to stakeholders' questions and requests for clarification about the applicability of these provisions during the COVID-19 pandemic. The Bureau has determined to issue this interpretive rule to provide general guidance to stakeholders and other members of the public. Accordingly, the Bureau is clarifying that

(1)if a consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency,

(2)the consumer's brief statement describing the emergency identifies a financial need that is due to the COVID-19 pandemic, and

(3)the emergency necessitates consummating the credit transaction before the end of an applicable TRID Rule waiting period or must be met before the end of the Regulation Z Rescission Rules waiting period, then the consumer has a bona fide personal financial emergency that would permit the consumer to utilize the modification and waiver provisions, subject to the applicable procedures set forth in the TRID Rule and the Regulation Z Rescission Rules. 11 11 Neither the TRID Rule nor the Regulation Z Rescission Rules modification and waiver provisions permit creditors to use printed forms for consumers to agree to such modifications or waivers. *See* 12 CFR 1026.15(e); 1026.19(e)(1)(v) and (f)(1)(iv); 12 CFR 1026.23(e). The Bureau notes that this prohibition also applies to disclosures delivered in compliance with the Electronic Signatures in Global and National Commerce Act (15 U.S.C. 7001 *et seq.* ). For example, the creditor cannot include a pre-populated waiver form within a batch of electronic disclosures provided to the consumer under the TRID Rule, Regulation Z, and other regulations. Regulation Z does not mandate that creditors inform consumers of their ability to use the modification and waiver provisions in the TRID Rule or the Regulation Z Rescission Rules if the consumer has a bona fide financial emergency. Some consumers may be unaware that these provisions may be available to them. Thus, the Bureau encourages creditors to consider voluntarily informing consumers during the COVID-19 pandemic of their ability to utilize the modification and waiver provisions for bona fide personal financial emergencies if the consumer has a need to obtain funds due to the COVID-19 pandemic prior to the end of an applicable waiting period. 2. Changed Circumstances Under the TRID Rule, creditors 12 must estimate in good faith the costs that consumers will incur in connection with their mortgage transaction and disclose them on the Loan Estimate. 13 For purposes of determining good faith under the TRID Rule, creditors may use revised estimates of such costs in a limited number of situations pursuant to Regulation Z, § 1026.19(e)(3)(iv). 14 One such situation is if there are “changed circumstances” that affect the settlement charges consumers would incur. 15 The TRID Rule specifies that changed circumstances includes “an extraordinary event beyond the control of any interested party,” with the commentary to the TRID Rule clarifying that a “war or natural disaster” is an example of such an extraordinary event. 16 12 The TRID Rule also permits mortgage brokers to provide the Loan Estimate, but the creditor remains responsible for satisfaction of the requirements under § 1026.19(e). *See* 12 CFR 1026.19(e)(1)(ii). 13 12 CFR 1026.19(e)(3). As a general rule, an estimated closing cost disclosed on the Loan Estimate pursuant to § 1026.19(e)(1)(i) is in good faith if the charge paid by or imposed on the consumer does not exceed the amount originally disclosed. 12 CFR 1026.19(e)(3)(i). For certain categories of settlement charges, good faith is determined with reference to whether:

(1)The aggregate amount of certain charges paid by or imposed on the consumer does not exceed the aggregate amount of those charges disclosed pursuant to § 1026.19(e)(1)(i) by more than 10 percent ( *see* 12 CFR 1026.19(e)(3)(ii)(A)); or

(2)the charge was estimated consistent with the best information reasonably available at the time it was disclosed, regardless of whether the final amount exceeds the estimated amount ( *see* 12 CFR 1026.19(e)(3)(iii)). 14 12 CFR 1026.19(e)(3)(iv); 12 CFR 1026.19(e)(4)(i). Under § 1026.19(e)(4)(i), the revised estimates must be reflected on a revised version of the Loan Estimate, on the Closing Disclosure, or on a corrected Closing Disclosure. 15 12 CFR 1026.19(e)(3)(iv)(A). 16 12 CFR 1026.19(e)(3)(iv)(A)( *1* ); comment 19(e)(3)(iv)(A)-2. Economic disruptions and shortages during the COVID-19 pandemic may affect the ability of stakeholders to provide accurate estimates of some settlement charges. Stakeholders have sought guidance from the Bureau as to whether the COVID-19 pandemic is an extraordinary event that permits creditors to provide consumers with revised estimates reflecting changes in settlement charges. For example, a stakeholder asked to clarify whether, for purposes of establishing good faith, a creditor could provide a revised estimate of the appraisal fee based on changed circumstances where

(1)the amount disclosed on the Loan Estimate was based on a reasonable market price at the time of the estimate and

(2)the actual appraisal fee was higher because of a shortage of available appraisers due to the effects of the COVID-19 pandemic. Upon consideration of the interpretive issues, the Bureau concludes that, as with wars or natural disasters, the COVID-19 pandemic is an example of an extraordinary event beyond the control of any interested party, and thus is a changed circumstance. Accordingly, for purposes of determining good faith, creditors may use revised estimates of settlement charges that consumers would incur in connection with the mortgage transaction if the COVID-19 pandemic has affected the estimate of such settlement charges. 17 17 *See id.;* 12 CFR 1026.19(e)(4)(i). As noted above, the revised estimates must be reflected on a revised version of the Loan Estimate, on the Closing Disclosure, or on a corrected Closing Disclosure. 12 CFR 1026.19(e)(4)(i). *See also* 12 CFR 1024.2(b) (definition of “Changed circumstances” in Regulation X, which predates the TRID Rule changed circumstance definition, includes “Acts of God, war, disaster, or other emergency”). 3. Legal Authority and TILA Safe Harbor Provisions The Bureau is issuing this interpretive rule based on its authority to interpret TILA and Regulation Z, including under section 1022(b)(1) of the Dodd-Frank Act, which authorizes guidance as may be necessary or appropriate to enable the Bureau to administer and carry out the purposes and objectives of the Federal consumer financial laws. 18 18 12 U.S.C. 5512(b)(1). The relevant provisions of TILA and Regulation Z form part of Federal consumer financial law. *See* 12 U.S.C. 5481(12)(O), (14). By operation of TILA section 130(f), no provision of TILA sections 108(b), 108(c), 108(e), 112, or 130 imposing any liability applies to any act done or omitted in good faith in conformity with this interpretive rule, notwithstanding that after such act or omission has occurred, this interpretive rule is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. 19 19 15 U.S.C. 1640(f). II. Effective Date Because this rule is solely interpretive, it is not subject to the 30-day delayed effective date for substantive rules under section 553(d) of the Administrative Procedure Act. 20 Therefore, this rule is effective on May 4, 2020, the same date that it is published in the **Federal Register** . 20 5 U.S.C. 553(d). III. Regulatory Requirements This rule articulates the Bureau's interpretation of Regulation Z and TILA. As an interpretive rule, it is exempt from the notice-and-comment rulemaking requirements of the Administrative Procedure Act. 21 Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 22 21 5 U.S.C. 553(b). 22 5 U.S.C. 603(a), 604(a). The Bureau has determined that this interpretive rule does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring OMB approval under the Paperwork Reduction Act. 23 23 44 U.S.C. 3501 *et seq.* IV. Congressional Review Act Pursuant to the Congressional Review Act, 24 the Bureau will submit a report containing this interpretive rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule's published effective date. The Office of Information and Regulatory Affairs has designated this interpretive rule as not a “major rule” as defined by 5 U.S.C. 804(2). 24 5 U.S.C. 801 *et seq.* V. Signing Authority The Director of the Bureau, having reviewed and approved this document, is delegating the authority to electronically sign this document to Laura Galban, a Bureau Federal Register Liaison, for purposes of publication in the **Federal Register** . Dated: April 29, 2020. Laura Galban, Federal Register Liaison, Bureau of Consumer Financial Protection. [FR Doc. 2020-09515 Filed 5-1-20; 8:45 am]

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