Answer:
Answer by Randy Carey: There is no regulatory requirement to have either signed. You have to deliver the notice, therefore most banks require the borrower to sign the right of rescission notice in order to have proof of delivery. However, you will see that the only signature line on the model form is for them to cancel the transaction:
http://www.bankersonline.com/regs/12-1026/h8.pdf
The certificate of non-cancellation is not a regulatory requirement and has no basis in the regulation, so that is purely a bank generated requirement.
Answer:
Answer by David Dickinson: I agree with Randy, but will add:
I highly recommend NOT having the "Certificate of Non cancellation" signed as a routine practice. Every time I've seen a bank require this, I find some loan officers that have borrowers sign this at the time of closing rather than waiting until after the rescission period expires. This creates all sorts of legal issues. In the case of doubt, call the borrowers and ask them if they rescinded. In a rare case, I might have the borrowers sign the "non cancellation" line (but very rare).
First published on BankersOnline.com 10/29/12
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