Answer:
There is no regulatory requirement for this section of many rescission forms. The borrower must sign to acknowledge receipt of the rescission notice and disclosures, but need not sign anything saying that he/she has not rescinded, after the lapse of the rescission period.Actually, closings at which borrowers are asked to postdate their signatures in this section have been roundly (and correctly, IMHO) criticized as unfair and deceptive, since the borrower may not realize the signature has no effect on his/her right to rescind during the coolingoff period.
All of that said, counsel of many lenders continue to recommend including an acknowledgment signature affixed by all parties entitled to rescind, saying that no rescission has been exercised. The argument is that this gives the lender a reasonable belief that it's OK to disburse. But many lenders have decided to put that signature on a separate form that is not included in the closing package.
First published on BankersOnline.com 05/5/03
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