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#29652 - 08/27/02 05:01 PM TIL Disclosure Error
Anonymous
Unregistered

During a recent Reg TIL file review I noticed that we have a mortgage loan that closed this past January with the incorrect year indicated. The year was of course January 2002 but the final TIL signed by the customer is January 2001. Are there any compliance issues I should be concerned with.
To complicate matters the transaction is rescindable. The ROR document also indicates a transaction date of January 2001 with the cancel deadline indicated as January 2002.

Help!

Have we blown this ROR?

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Lending Compliance
#29653 - 08/27/02 05:06 PM Re: TIL Disclosure Error
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,608
Near the Land of Enchantment
It's definitely more than three business days between closing and disbursement!

I don't think this is a huge issue. It's very obvious that it's a typographical error. There are lots of those made in January, as we all know. You could correct the date and have the customer initial the correction.
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Opinions my own.

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#29654 - 08/28/02 03:15 PM Re: TIL Disclosure Error
Howard Lax Offline
Gold Star
Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
The issue is whether the wrong date is in the Notice of Right to Cancel or in the payment schedule, which is a material disclosure under Footnote 40 to Regulation Z. An error in the Notice or in a material disclosure triggers the three year rule. Other TILA errors do not extend the right to cancel, but may result in a potential penalty uner 15 USC 1640 (15 USC 1641 for the investor). If the error was only on the acknowledgment of receipt, that is not a required part of the disclosure, and you only face an issue with your regulator (you are required to be able to prove compliance with TILA)
_________________________
Howard A. Lax Lipson, Neilson, et. al. Bloomfield Hills, MI hlax@lipsonneilson.com

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