We took an application for a HELOAN on 5/3. The loan officer asked for initial disclosures on 7/19 (yes, I said 7/19 - not a typo). The loan is to refinance an existing HELOC with our bank, but we are closing it out, satisfying the note/mortgage and doing a whole new closed-end HELOAN. I told the lender that they could not close until July 27th.

Is there any way to avoid this waiting period? Since this really is a modification of a loan product with out bank?

The only way to reduce/eliminate the waiting period is if the borrower has a bona, personal, financial emergency. Doesn't sound to me like you have one.

Under 226.5b this is not a modification but a refinancing and requires all new disclosure that are required under Subpart C of Reg Z which includes the ETIL, GFE (RESPA) and all the other applicable fun disclosures and waiting periods.

That's what I figured...thanks for the confirmation.