Q: Are there exceptions to the disclosure requirements for loans secured by a timeshare interest?
A: Yes. Loans secured by interests in timeshare plans are still subject to the TILA-RESPA Rule, but the Bureau recognizes that these loans may commonly be consummated within a few days of the consumer’s application. The Bureau thus adopted abbreviated timing, delivery, and disclosure obligations for these loans when consummation occurs within three business days of the application. For these loans, creditors may forego a Loan Estimate and provide only the Closing Disclosure. (§§ 1026.19(e)(1)(iii)(C)) and (f)(1)(ii)(B); Comment 19(e)(1)(iii)-4 and Comment 19(f)(1)(ii)-3)
In addition, the waiting periods and timing requirements applicable to most loans subject to the TILA-RESPA Rule are inapplicable to loans secured by timeshare interests. Rather, creditors are required to ensure only that the consumer receives the Closing Disclosure no later than consummation. (§ 1026.19(f)(1)(ii)(B)). For details relating to the timing requirements for the Closing Disclosure in timeshare transactions, see Comment 19(f)(1)(iii)-3.