An equity loan may not be closed before one business day after the date that the owner of the homestead receives a final itemized disclosure of the actual fees, points, interest, costs, and charges that will be charged at closing. If a bona fide emergency or another good cause exists and the lender obtains the written consent of the owner, the lender may provide the documentation to the owner or the lender may modify previously provided documentation on the date of closing.

1. (1) A lender may satisfy the disclosure requirement of this section by delivery to the borrower of a properly completed Department of Housing and Urban Development (HUD) disclosure Form HUD-1 or HUD-1A.
2. (2) An owner may consent to receive 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.

3. (3) To modify timing of the disclosure, the lender should obtain written consent from the owner that:

   1. (A) describes the emergency;
   2. (B) specifically states that the owner consents to receive the preclosing disclosure on the date of closing; and
   3. (C) bears the signature of all of the owners entitled to receive the preclosing disclosure.

4. (4) A de minimus variance can be good cause at the owner's option. An owner who has received a preclosing disclosure may consent to receive a subsequent or modified preclosing disclosure on the date of closing under the good cause standard if:

   1. (A) the actual disclosed fees, costs, points and charges on the date of closing do not vary from the initial preclosing disclosure by more than the greater of:

      1. (i) $100 of the amount charged at closing or
      2. (ii) 0.125 percent of the principal amount of the equity loan at closing; or
   2. (B) one or more items in subparagraph (A) of this paragraph is less than the disclosed rate or amount on the initial preclosing disclosure.
5. (5) An owner may consent to receive the preclosing disclosure or a modification of the preclosing disclosure on the date of closing if another good cause exists. A condition that would cause the owner substantial financial hardship if the equity loan were not allowed to close on the scheduled date of closing is an example of other good cause.
6. (6) An equity loan may be closed at any time during normal business hours on the next business day following the calendar day on which the owner receives the preclosing disclosure or any calendar day thereafter.

Source Note:The provisions of this §153.13 adopted to be effective January 8, 2004, 29 TexReg 84.