Bona Fide Emergency Exception

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.  To document a bona fide emergency modification, the lender should obtain a written statement from the owner that:

        describes the emergency;

        specifically states that the owner consents to receive the preclosing disclosure or a modification of the preclosing disclosure on the date of closing;

        bears the signature of all of the owners entitled to receive the preclosing disclosure; and

        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.