source:
  type: regulation
  id: reg-z-1026.31
  authority: 12 CFR §1026.31 — General rules (Regulation Z)
  description: 12 CFR §1026.31 — General rules.
  coverage_tier: operative
obligations:
- id: reg-z-1026.31-full
  canonical_id: reg-z-1026.31-full
  section: 12 CFR §1026.31 — General rules
  type: do
  tags:
  - regulator-direct
  - tila
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1026.31 — General rules
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.31
    snapshot_id: afbbe1190671b76e
    fetched_at: '2026-06-17T18:31:37Z'
    content_hash: sha256:46f77eac295749f0529d0034b769509507272f3708ec39d12fb582be31999206
    paragraph_quote: '§ 1026.31 General rules. (a) Relation to other subparts in this
      part. The requirements and limitations of this subpart are in addition to and
      not in lieu of those contained in other subparts of this part. (b) Form of disclosures.
      The creditor shall make the disclosures required by this subpart clearly and
      conspicuously in writing, in a form that the consumer may keep. The disclosures
      required by this subpart may be provided to the consumer in electronic form,
      subject to compliance with the consumer consent and other applicable provisions
      of the Electronic Signatures in Global and National Commerce Act (E-Sign Act)
      ( 15 U.S.C. 7001 et seq. ). (c) Timing of disclosure —(1) Disclosures for high-cost
      mortgages. The creditor shall furnish the disclosures required by § 1026.32
      at least three business days prior to consummation or account opening of a high-cost
      mortgage as defined in § 1026.32(a) . (i) Change in terms. After complying with
      this paragraph (c)(1) and prior to consummation or account opening, if the creditor
      changes any term that makes the disclosures inaccurate, new disclosures shall
      be provided in accordance with the requirements of this subpart. (ii) Telephone
      disclosures. A creditor may provide new disclosures required by paragraph (c)(1)(i)
      of this section by telephone if the consumer initiates the change and if, prior
      to or at consummation or account opening: (A) The creditor provides new written
      disclosures; and (B) The consumer and creditor sign a statement that the new
      disclosures were provided by telephone at least three days prior to consummation
      or account opening, as applicable. (iii) Consumer''s waiver of waiting period
      before consummation or account opening. The consumer may, after receiving the
      disclosures required by this paragraph (c)(1), modify or waive the three-day
      waiting period between delivery of those disclosures and consummation or account
      opening if the consumer determines that the extension of credit is needed to
      meet a bona fide personal financial emergency. To modify or waive the right,
      the consumer shall give the creditor a dated written statement that describes
      the emergency, specifically modifies or waives the waiting period, and bears
      the signature of all the consumers entitled to the waiting period. Printed forms
      for this purpose are prohibited, except when creditors are permitted to use
      printed forms pursuant to § 1026.23(e)(2) . (2) Disclosures for reverse mortgages.
      The creditor shall furnish the disclosures required by § 1026.33 at least three
      business days prior to: (i) Consummation of a closed-end credit transaction;
      or (ii) The first transaction under an open-end credit plan. (d) Basis of disclosures
      and use of estimates —(1) Legal obligation. Disclosures shall reflect the terms
      of the legal obligation between the parties. (2) Estimates. If any information
      necessary for an accurate disclosure is unknown to the creditor, the creditor
      shall make the disclosure based on the best information reasonably available
      at the time the disclosure is provided, and shall state clearly that the disclosure
      is an estimate. (3) Per-diem interest. For a transaction in which a portion
      of the interest is determined on a per-diem basis and collected at consummation,
      any disclosure affected by the per-diem interest shall be considered accurate
      if the disclosure is based on the information known to the creditor at the time
      that the disclosure documents are prepared. (e) Multiple creditors; multiple
      consumers. If a transaction involves more than one creditor, only one set of
      disclosures shall be given and the creditors shall agree among themselves which
      creditor must comply with the requirements that this part imposes on any or
      all of them. If there is more than one consumer , the disclosures may be made
      to any consumer who is primarily liable on the obligation . If the transaction
      is rescindable under § 1026.15 or § 1026.23 , however, the disclosures shall
      be made to each consumer who has the right to rescind. (f) Effect of subsequent
      events. If a disclosure becomes inaccurate because of an event that occurs after
      the creditor delivers the required disclosures, the inaccuracy is not a violation
      of Regulation Z ( 12 CFR part 1026 ), although new disclosures may be required
      for mortgages covered by § 1026.32 under paragraph (c) of this section, § 1026.9(c),
      § 1026.19, or § 1026.20. (g) Accuracy of annual percentage rate . For purposes
      of section 1026.32 , the annual percentage rate shall be considered accurate,
      and may be used in determining whether a transaction is covered by section 1026.32
      , if it is accurate according to the requirements and within the tolerances
      under section 1026.22 for closed-end credit transactions or 1026.6(a) for open-end
      credit plans. The finance charge tolerances for rescission under section 1026.23(g)
      or (h) shall not apply for this purpose. (h) Corrections and unintentional violations.
      A creditor or assignee in a high-cost mortgage, as defined in § 1026.32(a) ,
      who, when acting in good faith, failed to comply with any requirement under
      section 129 of the Act will not be deemed to have violated such requirement
      if the creditor or assignee satisfies either of the following sets of conditions:
      (1) (i) Within 30 days of consummation or account opening and prior to the institution
      of any action, the consumer is notified of or discovers the violation; (ii)
      Appropriate restitution is made within a reasonable time; and (iii) Within a
      reasonable time, whatever adjustments are necessary are made to the loan or
      credit plan to either, at the choice of the consumer: (A) Make the loan or credit
      plan satisfy the requirements of 15 U.S.C. 1631 - 1651 ; or (B) Change the terms
      of the loan or credit plan in a manner beneficial to the consumer so that the
      loan or credit plan will no longer be a high-cost mortgage. (2) (i) Within 60
      days of the creditor''s discovery or receipt of notification of an unintentional
      violation or bona fide error and prior to the institution of any action, the
      consumer is notified of the compliance failure; (ii) Appropriate restitution
      is made within a reasonable time; and (iii) Within a reasonable time, whatever
      adjustments are necessary are made to the loan or credit plan to either, at
      the choice of the consumer: (A) Make the loan or credit plan satisfy the requirements
      of 15 U.S.C. 1631 - 1651 ; or (B) Change the terms of the loan or credit plan
      in a manner beneficial to the consumer so that the loan or credit plan will
      no longer be a high-cost mortgage. [ 76 FR 79772 , Dec. 22, 2011, as amended
      at 78 FR 6962 , Jan. 31, 2013; 78 FR 60440 , Oct. 1, 2013]'
  judgment: false
