I had a lender pose a question regarding the waiver of the waiting period due to a bona fide financial emergency after issuing a closing disclosure post 08/1/15 in the following circumstance. In a purchase transaction, the home is going to foreclosure and the buyer will lose the home if the waiting period is not waived. The financial emergency belongs to the seller but the buyer is affected. Would you consider this a valid reason to allow the waiver?
You must look at the circumstances of each situation to determine if there is a bona fide personal financial emergency. I believe this situation could possibly qualify as such. You would need to consider the situation the consumer is in and what the effect will be if the waiver isn’t used (e.g. they have sold their home and are counting on the new purchase to be their immediate residence and will be out of a home if the waiver isn’t used, etc.). If it is determined to be bona fide personal financial emergency be sure to thoroughly document your file as to how you came to that conclusion.