We did a HELOC to joint borrowers (spouses), however only Mrs was in title to the real estate. She is the sole deeded owner of the subject ptoeprty which is located in Ohio. The Mortgage was exected by Mrs and on the signature page of the Mortgage, Mr signed a Release of Dower.

We only prepared one Right to Cancel based on the fact that Mrs is the only deeded owner and Mr executed a release fo dower.

Should we have had Mr. also executed a Right to Cancel? He is not in title and does not have any interest in the subject.

Thanks for your feedback.

Yes he should have been given a ror because he has dower rights.

jlr - Do you have a citation, because my resources indicate that it is not necesssary in Ohio?

"Mr executed a release fo dower"

Since he signed a release, I do not believe he would have ROR.

According to the letter of the law, I would agree that Mr should not have ROR according to Reg. Z. Nobody has ever cited a specific state statue to me.

However, rescission is the first thing the borrower's attorney will look at to go after the bank in either foreclosure or bankruptcy. Especially today where written law doesn't matter and banks lose no matter what, I wouldn't take that chance. Our policy (and most local judges) is, if they sign the mortgage, they get ROR.

The only liability that causes is if your non-borrowing releasing dower spouse actually rescinds, the borrower could potentially sue you for giving rescission to someone who shouldn't have the right. If I have to take a risk on one side or the other, I would rather fight to keep my money as opposed to fight to get it back.

We error on the side of the risk as well. In addition to signing the mortgage to release dower, our understanding is if the spouse also resides in the dwelling they require a TIL and a ROR.