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Latest Compliance - Right of Rescission Topics

ROR Applicable on a Fed Reserve Holiday?

03/17/2008

If we are open on a holiday in which the Federal Reserve is closed, can we use that day as one of the three days we must provide the borrower under Right of Rescission?

Undated Notice - 3 Year Right to Rescind?

07/09/2007

If the bank provides a notice of right to cancel assuming that the dates on the notice are accurate and the customer signs the notice, but fails to date it, are they entitled to a 3 year right of rescission because the notice was not dated?

Rescinding the Rescission

07/02/2007

We have a borrower that elected to exercise the right of rescission and signed the disclosure. A day or so after doing so, the borrower again changed their mind and wishes to continue with the transaction. What steps should be taken at this point in relation to compliance?

Commercial Loan Subject to Reg Z & RESPA?

06/11/2007

Our customers requested a commercial loan to remodel the upstairs of their commercial building into a living area. This living area is and will continue to be the owner's primary residence. Approximately 60% of the building is their business and 40% is their residence. The collateral is this commercial building. Would this loan be subject to Reg Z and right of rescission, as the funds are being used to remodel their primary residence? Would this loan be subject to RESPA? It appears this should be a consumer loan versus a commercial based on the purpose. Any thoughts here?

ROR on Refinance

02/12/2007

A rescindable loan for $20,000 was made and the ROR notice was provided. This loan is paid down to $10,000 and then the borrower refinances the $10,000 and wants an additional $5,000 for a total of a $15,000 loan. Is a ROR notice required for the $15,000 loan even though it is less than the original $20,000?

ROR on Rental Home Renovation Loan

08/28/2006

We have a revolving HELOC that will be secured by primary residence, but the loan is for renovations to a single family rental unit (non-owner occupied), will there be right of rescission?

Need Help on ROR and Construction/Permanent Loans

07/24/2006

I am having difficulty understanding Right of Rescission and TIL issues because there doesn't appear to be a black and white answer. My question is about Construction/Permanent ("CP") loans and what they need for rescission rights. I have been told that CP loans are not considered Retail Mortgage Transactions and thus do not require a Right of Rescission. However, what if the borrower owns the lot the home is being built on and uses it as equity in the loan transaction? Does it matter that these loans are CP loans that will automatically roll to permanent financing? (We do a one-time close.) I am just looking for "A Dummies Guide to ROR's" ... can anyone offer any insight? Also, I understand a ROR is needed for any new money in a transaction. I am not certain I understand what is considered "new money" in most transactions. If the borrower refinances their home, is the new money the amount above what the principle was prior to the pay off? Any and ALL information will be greatly appreciated.

Does ROR Apply on Loan Secured by Land Only?

06/19/2006

A borrower requests new money, secured by land only, upon which their primary residence (a mobile home) sits. Does Right of Rescission apply if we do not take a security interest in the mobile home (borrower's primary residence)?

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Most Popular Compliance Content

Fraud and FedNow payments

09/08/2024

We are considering allowing customers to use FedNow to receive instant wires. The concern is our customer receives the wire and spends the funds and a day, two, or more go by and we receive a claim to return the funds due to fraud. Which bank would have liability for a fraudulent wire transfer, the sending bank or the receiving bank? Can you provide the references that I should be looking into (UCC, Regulations, etc.)?

Does one mistake make a business an MSB?

09/01/2024

We have a commercial customer that cashes checks, but they are not registered as an MSB because they have a policy to not cash checks for one person over $1000 in one day. We found one instance of checks cashed over $1,000 for one person. Are we required to have the customer register as an MSB, or can we verify their check cashing policy and continue to monitor the account for any further instances?

Lost Debit Card

08/25/2024

We have a customer that lost their debit card but didn't notify us until day five. Under Visa's zero liability policy, would this be considered "gross negligence"? The charges do not all add up to $500.00, so are we required to give the customer any credit at all?

Consumer Protection for mistake in loan payment transaction

08/25/2024

Scenario: A bank employee inadvertently makes an error while processing a payment authorized by phone by the customer, for example, customer authorized his/her personal loan monthly payment of $100 but the employee processes a debit for $101, or $96. Could this be considered an unauthorized electronic fund based on the amount error? Can this be considered a violation of other consumer protection law/reg? UDAAP?

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