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#933136 - 03/31/08 04:31 PM Another rescission question
stella Offline
Member
Joined: Nov 2006
Posts: 61
If I have a customer and we are paying off a first mortgage with a new first mortgage and a new second mortgage does the second mortgage get a right of rescission? There was no cash out on either loan and we are paying off ourselves.

Thanks!

S

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Lending Compliance
#933169 - 03/31/08 05:03 PM Re: Another rescission question stella
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
IF THIS IS A CLOSED END LOAN:
If I understand correctly, you are not adding any new money to the borrower's home or to the bank's previous debt to this borrower. If so, no new money. Therefore, no new RofR.

If this is an open-end loan, you must always give a RofR (every time).
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David Dickinson
http://www.bankerscompliance.com

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