03/20/2006
If a borrower is refinancing their 2nd home (cashout), is it subject to Right of Rescission?
02/13/2006
We have recently had a difference of opinion on a mortgage loan closing at our bank. The situation is a young couple apply jointly for the purchase of a new home. They did not have the down payment, so the joint applicant parents put a second mortgage on their home as additional collateral. The parents are not on the note, or any other documents other than an appraisal on their property and signing a mortgage on their dwelling. Does Right of Rescission apply on the parents?
02/13/2006
HMDA - How do you report a refinance that is for the purpose of buying out a second owner? A typical example is when a couple divorces, and one spouse refinances the existing mortgage to buyout and remove the second spouse from the title and mortgage. This would clearly qualify as a refinance, but would it also qualify as a "purchase" for HMDA reporting purposes, and therefore need to be reported as a purchase? Also, has this issue been formally addressed in regulatory Q and As?
02/06/2006
Is a mortgage transaction subject to right of rescission under the following scenario? A Customer is buying a property on contract, does not currently live in the property, but intends to live in it at "some point" in the future.
01/30/2006
I have a LLC client who wants to do a HELOC on his personal residence and put it under the LLC. The proceeds are being used for home improvements on a different house he is buying. Do we need to have the right of rescission and HUD-1 forms?
01/09/2006
We have a loan request for a real estate loan to be made to two individuals who live in the home, however, the owner of the home is an LLC with the same two individuals signing as members of the LLC. Is the right of rescission required for this type of transaction and, if so, who signs the rescission, the borrowers or the LLC?
11/07/2005
If a Bank provides the borrower with a right of rescission, but wasn’t required to by law (i.e. on a purchase money transaction) and material disclosures were not provided (i.e. the final Truth in Lending disclosure provided at closing was not accurate and the APR was understated), is the borrower entitled to rescind the transaction up to three years after closing?
10/17/2005
When closing a new loan using the existing residence as collateral to purchase additional acreage, the right of rescission applies. When do you have the sellers sign their documents, since we will only have one loan, but it has the new property as collateral as well? The same day as borrowers' initial signing, or when the loan comes out of rescission? The concern I have is that if the customers sign a mortgage on a property they do not own, what happens if the seller decides not to sell when we are in the rescission period? Other instititutions have waited until it is out of rescission, and then have the seller sign a separate HUD along with the borrowers, showing the date it came out of rescission. Our compliance officer states the seller must sign the same day as the initial docs are signed.
08/01/2005
Which section of Regulation Z should I review in reference to Home Equity Loans with respects to first mortgage liens?
05/16/2005
We have a future advance clause in our first mortgage for x amount of dollars. We then use this to secure personal notes. Should these personal notes have a mortgage servicing disclosure, RESPA, flood determination form?