I need help and fast, so I'm counting on my BOL buddies.

When does the ROR begin in this case.

We have an application where a married applicant is signing the note only. The spouse will not be on the note. But, since Ohio is a dower state, we need the spouse to sign off dower.

The applicant signed the note on 7/21. The spouse did not sign off dower until today. Did the 3-day ROR start ticking on 7/21 or does it start ticking today?

The borrower wants to close ASAP, so please help me ASAP.

Thank you!

The ROR period starts whenever all 3 of the listed criteria (open account, TIL, and ROR disclosure) are complete. If they signed the ROR today, it's 3 days from today (provided you gave the non-borrowing spouse the TIL). If you've already funded the loan, your 3 days probably just turned into 3 years.

Thank you so much for your help.

But, what if the non-borrowing spouse was not provided the TIL? Does the ROR period still start today?
I'm also confused about where dower applies to Reg Z or not. Here's the section of Reg Z that pertains to dower.

2. Rescission rules . For purposes of rescission under §§ 226.15 and 226.23, a consumer includes any natural person whose ownership interest in his or her principal dwelling is subject to the risk of loss. Thus, if a security interest is taken in A’s ownership interest in a house and that house is A’s principal dwelling, A is a consumer for purposes of rescission, even if A is not liable, either primarily or secondarily, on the underlying consumer credit transaction. An ownership interest does not include, for example, leaseholds or inchoate rights, such as dower.

What confuses me is that, by definition, the dower spouse does have an ownership interest in the property. HELP????

Molly- I attended a RE Lending Compliance seminar in November of 2005- Denny Deischer put on the seminar.

He stated dower rights is not ownership during the seminar on Reg Z.

I later confirmed what he said in an email that I have if at any time the examiners question our RORs. Which they haven't.

Your answer is right in the commentary you quoted: dower rights do not include a right to rescind. It is not an ownership interest for Reg Z purposes.

You are the absolute best!

That is what I was hoping for but, I didn't want to make a mistake that would, like bghres said, turn the rescission period into 3 years.

I'm still new at this compliance thing, so I really count on BOL "experts" like you to help me out. I don't even want to think what I would do without BOL. ::shudder::

Thanks again!

Dower rights do not constitute the right to rescind under Reg. Z. However, if OH is a dower rights state that requires the non-owner party to "sign off" their dower rights then state law may have a rescission rule and since this rule would be more stringent than Reg Z it would take precedence over the Reg Z exemption.

If there are no such state rescission rules then the normal rescission rules under Reg Z would prevail and the "dower owner" would not be entitled to rescind nor would they have to be furnished material disclosures.

We have always had the non-titled spouse sign the Mortgage, TIL and ROR.

The questions we are trying to answer are:

Is it a Reg Z violation if we give the ROR to a non-titled spouse?

What is the risk, if any, if we continue giving the ROR to a non-titled spouse?

Is it a Reg Z violation if we give the ROR to a non-titled spouse?


It is never a violation to do more than what is required.

Like Randy mentioned, there is usually no issue with overdisclosure.

Considering the risk, the only thing I can think of is a potential mess if the non-titled spouse elects to rescind the transaction. You are giving them a right that they might not otherwise be entitled to. The outcome is something a court may have to decide.

Ok, I hope overdisclosing includes girlfriends. She is not on the Deed or the Mortgage but she signed the Note so the closer had her sign a ROR.

If she signed the note, doesn't she have to get the ROR. She's a borrower, not just someone living in the house or on the deed.

Signing the note is not a trigger term for the right of rescission. Only the pledging of an ownership interest in the consumer's principal dwelling triggers RofR. If the consumer has no ownership interest in the property, RofR does not apply under Reg. Z.