As previously announced, the Rhode Island Department of Business Regulation amended their regulations which implement the “Home Loan Protection Act” (see https://compliance.docutech.com/2018/11/05/compliance-news-changes-to-rhode-islands-home-loan-protection-act-regulations/). Part of these changes included modifications to the following disclosures provided pursuant to the Act:
- RI Prohibited Acts of Lenders and Loan Brokers (Cx11241)
- RI Tangible Net Benefit (Cx11242)
- RI High Cost Related Prohibited Acts of Lenders and Loan Brokers (Cx11408)
- RI Home Loan Protection Act Disclosure (Cx12089)
- RI Form 4 HLPA (Cx12090)
We will be modifying these forms to match the model forms promulgated in new Bulletin 2018-4 (available at: http://www.dbr.state.ri.us/news/banking.php). The new regulations require the following:
“All Persons subject to the Act must use the exact disclosure forms, provided in a bulletin issued by the Department for that purpose. The disclosures shall not be altered or changed in any manner.” (230-40 R.I. Code § 10-3.5[A][g])
The new model forms contain several notable typographical errors, such as the definition of “Creditor” being “any person who regulatory [sic] makes available a home loan”. Based on informal feedback we have received from the Department, we have corrected these typographical errors on our copies of these forms.
In addition, the new regulations specify that Disclosure Forms 1 and 2 (Cx11241 and Cx11408) must be provided “within three (3) days of application” (Ibid. § 10-3.5[A][d]). This is in contrast with the previous version of the regulations, which stipulated that they should be provided “within three (3) business days of application” (11-2 R.I. Code § 3:5[A][iv]), as well as the current text of Forms 1 and 2 which emphasize that they should “be provided no later than three (3) business days of application.”
Again, based on informal feedback from the Department, we are concluding that the new regulations mean “three business days” and will not be changing the print conditions for these documents.
These changes will take effect immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.