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#721956 - 04/25/07 07:29 PM rescission error
stella Offline
Member
Joined: Nov 2006
Posts: 61
We had a loan close where the principal residence was used as additional collateral...should have been given a ROR at closing but it was missed. How do we proceed from this point?
Last edited by stella; 04/25/07 07:29 PM.
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Lending Compliance
#721970 - 04/25/07 07:42 PM Re: rescission error stella
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,965
TN
My advice - do nothing and hope they don't rescind within the next 3 years. This cannot be corrected.
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#722047 - 04/25/07 08:50 PM Re: rescission error Skittles
AngelinaLM Offline
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Joined: Mar 2005
Posts: 1,655
Boise, ID
We had the same thing happen on a HELOC and we had the borrower sign a new rescission, and refunded the interest that had accrued between the date that it was put on the system and the new rescission date. We put documentation in the file so that if we were asked 2 years later we'd know what we had done.
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#722154 - 04/26/07 02:28 AM Re: rescission error AngelinaLM
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,765
Central City, NE
You can't fix a RofR error once you have advanced the loan proceeds. You might provide a correct RofR BEFORE advancing the funds. Trying to "correct" the error only notifies the borrower that you messed up.
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