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#1799114 - 03/28/13 01:20 PM ROR on a purchase money
MMontjoy01 Offline
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MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
You have a purchase money loan and you typically are giving the Partial ROR that references that purchase money does not fall within the 3 day rescission period. Then it just so happens on one of the purchase money loans you closed one day, a regular ROR was given instead. Would this make a compliance exception or put us in a 3 year rescission period? If so, can it be corrected. Any help would be greatly appreciated. Let me know if further explanation is needed.

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#1799131 - 03/28/13 01:52 PM Re: ROR on a purchase money MMontjoy01
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
I assume you are referring to a Residenital Mortgage Transaction. Why are you giving rescision on a RMT?
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#1799138 - 03/28/13 01:59 PM Re: ROR on a purchase money MMontjoy01
MMontjoy01 Offline
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MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
I am referring to a HELOC loan that is the 2nd to the purchase of the home. Thanks.

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#1799199 - 03/28/13 03:19 PM Re: ROR on a purchase money MMontjoy01
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
OK, that's what I thought you might be referring to but I wasn't sure.

IMHO the incorrect rescission form would not cause you a regulatory violation because the initial advance being used for the RMT is not subject to rescission regardless. The rescission in these transactions is for the subsequent advances.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1799206 - 03/28/13 03:29 PM Re: ROR on a purchase money MMontjoy01
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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Posts: 21,277
I agree. As long as you did not advance additional non-purchase funds within the rescission period, there is no violation. I would take a look at the process to see why the wrong form was used.
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#1799237 - 03/28/13 03:54 PM Re: ROR on a purchase money MMontjoy01
MMontjoy01 Offline
Junior Member
MMontjoy01
Joined: Apr 2008
Posts: 47
NC, USA
Great and we have already taken a look into why the wrong form was used and it seems to be a single error.

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