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#1179605 - 05/08/09 07:18 PM right to rescind - obligor no ownership interest
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
We currently have a loan to A secured by her prinicipal residence. We are re-writing the loan to add B as an obligor. No new money. The collateral is now also his principal residence but he has no ownership interest.

I know that Reg Z and the Act differ on this, but am I ok if I comply with Reg Z and do not provide ROR to B?

Need to know quickly.

Thanks!
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Lending Compliance
#1179626 - 05/08/09 07:27 PM Re: right to rescind - obligor no ownership interest OnTheEdge
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
He has no ownership interest, just lives there...no rights to rescind.
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#1179705 - 05/08/09 08:04 PM Re: right to rescind - obligor no ownership interest RR Joker
swiggles Offline
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swiggles
Joined: Aug 2001
Posts: 7,351
Just a tidbit of interesting info.....in Texas, for a home equity loan, the owner AND the owner's spouse have the right to rescind......even if the spouse is not an owner. How 'd 'ya like them apples?!!!
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#1180087 - 05/11/09 01:24 PM Re: right to rescind - obligor no ownership interest swiggles
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,656
The Swamp
Yeah, Texas has some strange laws for sure! I tend to forget to put a "state" disclaimer on things!

Of course, I'm going to have to guess that OnTheEdge must live somewhere closer to me...being we are both in rural SE! wink
Last edited by RR joker; 05/11/09 01:25 PM.
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#1180120 - 05/11/09 01:48 PM Re: right to rescind - obligor no ownership interest RR Joker
M Cockrell Offline
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M Cockrell
Joined: Jan 2003
Posts: 1,048
Dallas, TX
Originally Posted By: RR joker
Yeah, Texas has some strange unique laws for sure! I tend to forget to put a "state" disclaimer on things!

Of course, I'm going to have to guess that OnTheEdge must live somewhere closer to me...being we are both in rural SE! wink

fixed wink
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