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Right of Rescission for Both Borrowers?

Question: 
We have a refinance loan (paying off a different mortgage, and they are refinancing with us). During the application process, there was a borrower and a co-borrower, but the co-borrower was to be removed because his credit score would have required that the borrower pay points for credit risk. Now, the loan is stated to be just a single applicant loan, but both borrowers are on the signed Deed of Trust (DOT)(Mortgage). They are listed and have signed the Final Truth in Lending and the Final HUD Settlement Statement. The co-borrower's name was still provided at closing and added to the closing documents almost fifteen days after the co-borrower was to be removed. HMDA also reflects the loan to be a single applicant loan. The final application has been signed by both parties, but the co-borrower's name was not disclosed on the final application; the co-borrower just added a signature. In the file, there is only a Right of Rescission (ROR) for the primary borrower, but the file indicates to us there should be a co-borrower also, due to both borrowers being listed and having signed the DOT. The closer failed to remove the co-borrowers information from the final closing documents. There are some documents that only have the primary borrower disclosed. Should there be a ROR for the co-borrower since they are both listed on the DOT and all the final closing documents with both signatures?
Answer: 

If the co-borrower is on the DOT, he is entitled to a right to rescind if this is the primary residence.

First published on BankersOnline.com 10/11/10

First published on 10/11/2010

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