When can a borrower waive the waiting period for receiving a corrected disclosure under MDIA?

A borrower can waive the waiting period for receiving a corrected disclosure under the Mortgage Disclosure Improvement Act (MDIA) specifically in cases of a financial emergency. This provision is designed to provide consumers with the flexibility they may need in urgent financial situations.

A financial emergency can include circumstances such as a natural disaster or other unexpected events that require immediate financial action. Under these conditions, the law allows borrowers to opt-out of the standard waiting period for disclosures to expedite the mortgage process.

While other options may seem plausible, they don’t align with the regulatory framework established by MDIA. Submitting an application online or requesting a faster loan closure does not inherently constitute a financial emergency and would not qualify for waiving the waiting period. Similarly, lenders cannot arbitrarily approve waivers without proper justification as established by MDIA regulations, reinforcing the necessity of a genuine financial emergency to expedite disclosure timing.