Skip to content
GeoDataVision
Thread Options
#1509427 - 02/11/11 10:06 PM TILA - Who has the right to rescind?
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
226.23(a)(1) States that each consumer who has an "ownership interest" in the principal dwelling shall have the right to rescind.

I've always taken this to mean that the person must be an actual owner on the deed. There is no mention of community property (if the house happens to be located in one).

Am I right? Only actual owners of record need to be given the right to rescind the transaction. If a spouse is not an owner.....no rescission.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
Lending Compliance
#1509538 - 02/12/11 09:38 PM Re: TILA - Who has the right to rescind? swiggles
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,347
Ownership interest in the principal dwelling extends to marital property and dower interests too. So no, you're not right. Sorry. But you've got to give the spouse ROR if they're living in the property that's being refinanced.

Dan quotes chapter and verse in his response to a similar question here

Return to Top
#1509539 - 02/12/11 10:25 PM Re: TILA - Who has the right to rescind? Truffle Royale
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
Actually, per the commentary dower rights do not trigger ROR under federal law. See this prior thread.

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1432570

State law might vary.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1509620 - 02/14/11 02:45 PM Re: TILA - Who has the right to rescind? Truffle Royale
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,832
Bloomington, IN
Originally Posted By: Truffle Royale
Dan quotes chapter and verse in his response to a similar question here


Just to clarify. My response in the linked thread specifically states "if the wife (consumer) has the ROR". Look to the definition of a consumer in 226.2 and its Commentary at (a)(11)(2).

As Kathleen states under Federal law the ROR does not extend to dower rights but state law may. If state law is more restrictive then it will take precedence.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#1509688 - 02/14/11 03:39 PM Re: TILA - Who has the right to rescind? Dan Persfull
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Thanks everyone. Under Texas state law, a non-owner spouse only has the right to rescind a home equity loan. This is in our state's constitution. Amazingly though, for a home improvement loan the constitution states that only the owner has the right. And our state rescission law counts calendar days which means fewer days than the federal requirement so we just always use the federal rules. Just thought inquiring minds might want to know this. wink
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#1510069 - 02/14/11 11:11 PM Re: TILA - Who has the right to rescind? swiggles
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,281
And we thank you for that info!
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1510265 - 02/15/11 04:38 PM Re: TILA - Who has the right to rescind? Kathleen O. Blanchard
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Originally Posted By: Kathleen B
And we thank you for that info!
....just want non-texas compliance professionals to feel my pain.....
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top

Moderator:  Andy_Z