Skip to content
 

Latest Compliance - Right of Rescission Topics

Right of Rescission: Construction Loan Plus Additional Funds

08/11/2003

When we are converting a construction loan on a primary residence to permanent financing, we sometimes advance additional funds to the borrower. If the additional funds are not for construction costs, would the additional amount dispersed be subject to the right of rescission?

Home Equity Loan, Primary Residence, and ROR

07/21/2003

Mr. Smith bought a house on 4/28/03 as his primary residence; however, he is not moving into the house until 7/1/03. Mr. Smith is taking a home equity line of credit out on the new house before he moves in. Does the right of rescission apply to the home equity loan?

ROR & Mobile Home On Land

06/30/2003

Does the 3 day right of rescission apply if we are refinancing the land only and the customer lives in a mobile home on the land? The mobile home is not pledged as collateral.

HOEPA penalties?

06/30/2003

What kind of fines and penalties apply if the required HOEPA disclosures were not given to the customer?

What constitutes a "principal residence" with regard to the right of rescission?

06/23/2003

What constitutes a "principal residence" for purpose of the right of rescission? We have a pending loan application where the borrower has moved out of his principal residence and is currently renting elsewhere. He wants has offered the residence as collateral for the loan, does the right of rescission apply?

Reg Z, Right Of Rescission, and Personal Financial Emergency

06/09/2003

Borrower is leaving on Monday on free Hawaiian trip with sister and is closing a refinance of home mortgage for needed "spending cash" for trip on Friday. Can she waive Right of Rescission period in dated written statement, after executing receipt of Notice of RoR? Our loan manager feels this is not a "bona fide personal financial emergency". Isn't question of what criteria constitutes a "bona fide personal financial emergency" under Reg Z 22615(e)up to the borrower's judgment, not lender or other 3rd party?

Right Of Rescission Exception Criteria

05/19/2003

Our company does not require a Rescission Period if the loan meets the following criteria: 1. Investment Property 2. Second Home 3. Primary Residence where we are paying off interim "construction" financing (we are not the original lender) and the borrower has never occupied the residence. I cannot find anything in Reg Z that would indicate this is a valid reason for waiving the Rescission Period. Are you aware of this exception? Secondly, there is a caveat to the above qualifications, i.e., if the borrower is receiving cashout and the loan meets the other criteria in #3 above, we DO require a Right of Rescission period.

Required Signatures On TIL?

05/05/2003

I am refinancing a first mortgage for a customer. The customer is married and the loan is to only one party. The spouse is going to sign the mortgage and right of rescission. I am being told by the purchaser of the loan that the spouse also has to sign the truth in lending. Is that correct?

Pages

Most Popular Compliance Content

Re-using a recent appraisal

07/07/2024

We have a business account that took out a construction loan 11 months ago on lot A. Our business customer just bought lot B (right beside lot A) and is planning to use the exact same floor plan as lot A for lot B for the construction. Since this appraisal was completed 11 months ago on a different address, would we have to get a new appraisal completed for lot B, or, since everything is the same besides the address (right next door with same floor plan not 1 year old) could we reuse the lot A appraisal for lot B? I am having trouble finding information about this in the regulation.

Borrower signatures on Right to Rescind notice

06/30/2024

When a right to rescind is involved in a real estate-secured transaction, we are trying to confirm if there is anything in the regulation that requires the borrower(s) to sign all copies of the notice of right of rescission, or only requires the borrower(s) to sign one copy for the lender and leave the borrower copies unsigned. We can only find where the number of copies to be provided is specified (two for each owner if on paper, one for each owner if delivered electronically).

Borrower-occupied or not for HMDA purposes?

06/23/2024

HMDA: If a reportable loan is secured by a residence but the first two borrowers listed it as investment property whereas the third borrower listed it as primary residence, how would you put the occupancy? The first two borrowers are parents of the third borrower, who'll live in the home. Thank you.

Internal raffles matter

06/23/2024

Can we do an internal raffle (selling tickets for a chance to win a prize) to benefit a non-profit organization?

Pages

Penalties View All

Search Topics

Compliance Topics