I have a situation related to right to recission. On a loan in our portfolio, we have a right to cancel with 5 borrowers listed on it. The loan is a consolidation loan with a home purpose from a different creditor. However, it is only signed by two individuals; those listed as Grantors. I am in a debate with my peer whether all 5 borrowers listed are required to sign the right to cancel or not. I cannot find anything in Reg Z telling me either way. Thoughts?

Only the individuals pledging their ownership interest in their principal dwelling will have the right of rescission.

(a) Consumer's right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction,