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?
01/14/2008
Do you count Saturday on a right of rescission if the bank is open a half day on Saturday?
07/23/2007
We are lending to a customer who is purchasing her home and doing home improvements all in one closing. Will a right of rescission apply?
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?
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?
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?
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?
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?
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.
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)?