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#2198984 - 11/26/18 04:18 PM ROR Model Form
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,060
In the mountains
For various reasons loans that are renewed / refinanced within our FI, they are given a new loan number and are processed as a new loan in the loan processing system. Attorney created language is included in the Note under loan purpose and additional terms that describes the nature of the transaction. As a result, the system generates Model Form H-8 (General) for right of rescission. Since this is technically a refinancing by the same creditor, it should have Model Form H-9 (Refinancing With Original Creditor).

We are checking with the software vendor to see if anything can be done, but in the event that there isn't anything that can be done, can we still provided Model Form H-8 since the transaction was processed as a new loan?
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Lending Compliance
#2199080 - 11/26/18 11:34 PM Re: ROR Model Form Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,618
Galveston, TX
Unless you are advancing new funds, you don't even need a RofR.
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#2199094 - 11/27/18 01:12 PM Re: ROR Model Form Likes to Comply
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Posts: 1,060
In the mountains
Does financing the escrow deposit count as advancing funds?
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#2199095 - 11/27/18 01:28 PM Re: ROR Model Form Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,618
Galveston, TX
For purposes of the right of rescission, a new advance does not include amounts attributed solely to the costs of the refinancing. These amounts would include §1026.4(c)(7) charges (such as attorneys fees and title examination and insurance fees, if bona fide and reasonable in amount), as well as insurance premiums and other charges that are not finance charges. (Finance charges on the new transaction—points, for example—would not be considered in determining whether there is a new advance of money in a refinancing since finance charges are not part of the amount financed.) To illustrate, if the sum of the outstanding principal balance plus the earned unpaid finance charge is $50,000 and the new amount financed is $51,000, then the refinancing would be exempt if the extra $1,000 is attributed solely to costs financed in connection with the refinancing that are not finance charges.
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