Vendor Guru Q&A - Compliance

Latest Compliance - Right of Rescission Topics

Wrong loan purpose leads to no rescission notice

03/24/2003

What should we do if a home improvement loan was initially applied for as a construction loan and no rescission form was given to the owners of the property? The borrower already received the money. Should we do a rescission form for the customer with a date in the future or try to match the note date? Our lenders periodically give us wrong loan request information and we have clean up work after the loan closes.

Right Of Rescission, New Commentary, and Holidays

03/10/2003

For right of rescission purposes, the new commentary 04/02 talks about the 4 legal holidays and the business day clarification. Does this now mean that only those 4 stated holidays are the only holidays to use and count when determining your 3 business days or are all 10 holidays still considered the "legal" holidays?

Three Rescission Questions: Purchasing Rented Unit, HELOC, and Personal Trusts

01/20/2003

If a client is purchasing a home, and it happens to be a residence they have been renting, are they required to have a rescission? Another situation: If a home equity line of credit is closing the same day as the primary financing for the purchase, is a rescission required for the line? One more: If the property is deeded to a personal trust, is a rescission required on a refinance?

Rescission Notice to Owners Only

01/06/2003

I am doing a home refinance for a husband and wife. The Deed of Trust is vested in his name only as his separate estate. Both husband and wife live at the home. Should the wife also be a grantor on the property and receive a Right of Recsission?

Insider Loans, Reg Z, and Right of Rescission

12/16/2002

Our organization has an insider loan secured by the primary residence in which the spouse of the insider signed the mortgage, the application, and the note. However, the spouse's name is not on the deed. Is this a violation of Reg. Z/TILA if the spouse did not sign the right of rescission?

Under what circumstances can the Right of Rescission be waived when refinancing?

12/02/2002

Under what circumstances can the Right of Rescission be waived when refinancing?

Correcting A Right Of Rescission Error

12/02/2002

Is there really any way to correct a Right of Rescission error such as disbursing before the period has expired or not giving the correct time period to rescind? I am trying to come up with a procedure short of paying off the loan and reclosing with proper disclosures that would correct these types of violations.

Right Of Rescission & Bridge Loans

11/04/2002

Is a Right of Rescission required on a bridge loan for 12 months using their current primary residence as collateral. Purpose of the loan is to purchase a new primary residence.

Bridge Loans & Waiving Right Of Rescission

11/04/2002

Is the 3 day right of rescission necessary in a situation where a bridge loan is being written for a couple to buy a new home and the security on the loan is a D.O.T. on the home they have listed to sell? If so, can the customers elect to waive their right of rescission?

Equipment Loans and the Right of Rescission

10/21/2002

We are loaning money on heating and air conditioning equipment in IN, KY, IL, TN, and MO. Are we required to have the consumer sign a 3 day Right of Rescission Agreement. We are not taking a lien on their property. If we do need them to sign, is it legal to have them sign a Waiver to their Right of Rescission so as to the install the equipment immediately?

Was this check altered or forged, and why does it

05/19/2024

Our customer issued a check to an insurance company. The item was altered (washed), made payable to a new payee, and deposited into that payee's account. We were outside of the 30 day return window and went bank to bank to recover the funds. We are being told that our claim is being denied due to the following: "The check contains a forged maker signature. This is not an altered item and there is no breach under UCC § 4-208. Our review of other items involving this drawer demonstrates that this check was not signed by an authorized signer of the drawer. As a result, we decline to pay the claim." How would they as the depositary bank be in any position to tell us that our customers signature is forged? It was not forged. The payee line was altered. What are our rights to refute their denial so that we can reclaim the money?

What changed on Reg CC Exams

05/12/2024

I see from the BOL Daily Compliance Briefing that the FDIC Exam Manual has been updated. Specifically it was noted, "Expedited Funds Availability Act (VI-1.1): Updated with technical changes related to regulatory dollar-amount thresholds and large deposit hold times." I've compared the old and new versions of the part of the Reg that is referenced and am hoping someone can point out to be specifically what has changed and what the new expectations are from the revision? I don't know that it will change our process because we already make funds available a little earlier than required in most cases and our disclosures accurately state this, but I want to be sure.

Latest Compliance - Right of Rescission Topics

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