We have a Notice of Right to Cancel inadvertently calculated with 2 business days right to rescind instead of 3 business days. The loan is not yet funded. Need assistance for the following questions:

(1) Possible to provide just the new ROR for borrower to sign or a complete new set of docs (including Note and Deed of Trust)and start from the beginning?

(2) If possible to provide new ROR, use the day when the Note is signed as the notice "transaction date" and provide 3 business days for the expiration date counted after the day the new notice is to be signed?

(3) Is a new TILA needed to be re-generated as of the day we provide the new ROR? If not, does the borrower need to re-sign the old one? I have read somewhere that TILA and ROR should be provided at the same time.


Thank you.

Basically, ROR mistakes are not correctable. There's been much discussion on this in the threads.

In answer to (1), NO. One of Dan's last posts on ROR outlines the case law that says that refinancing does not negate the error.

As far as it goes, does the wrong date calculation also mean your payoffs are short a day too? You're stuck with this the way it is. You just have to cross your fingers for the next three years and hope the borrower doesn't decide to recind.

If the loan has not funded yet - just give them a new 3 day right of rescission. That's the quickest and simpliest way to fix this problem. There is no error at this point since you have not funded the loan.

and to further clarify, Randy...wouldn't you start the 3 day count completely over with the new notice...not backdate as was was eluded to in original question #2?