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#2193201 - 09/20/18 03:08 PM Timing for Closing-Receipt of CD
Likes to Comply Offline
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Joined: Nov 2008
Posts: 1,054
In the mountains
A few of our staff attended a seminar and the instructor said that as long as one of the consumers on the transaction received the CD, for example in person, then loan loan could close in three days even if the other consumer's CD is being received by mail and they are considered to have received the CD three days after mailing it (assuming no rescission).

Is this because of the multiple consumers rule at 1026.17(d)? - In transactions that are not rescindable, the disclosures required by ยง 1026.19(f) may be provided to any consumer with primary liability on the obligation.

So even if we provide a CD to everyone on the loan, as long as we have proof of receipt for at least one of the borrowers that are primarily liable (which all of them would be individually responsible since they are co-borrowers), we can close the loan and not wait for receipt for the other borrowers...

Please confirm. Thanks in advance.
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#2193219 - 09/20/18 04:59 PM Re: Timing for Closing-Receipt of CD Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Correct, unless you are selling into the secondary - they might have a different overlay.
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#2220361 - 08/23/19 09:52 PM Re: Timing for Closing-Receipt of CD Likes to Comply
mac444 Offline
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Joined: May 2011
Posts: 77
On rescindable transaction with multiple borrowers to confirm early receipt, we will need early receipt confirmation from each borrower correct?

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#2220365 - 08/23/19 10:30 PM Re: Timing for Closing-Receipt of CD Likes to Comply
rlcarey Online
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rlcarey
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Galveston, TX
Yes - all parties with the right of rescission must receive the CD to start the closing clock.
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#2266985 - 02/28/22 05:57 PM Re: Timing for Closing-Receipt of CD Likes to Comply
Tmbg99 Offline
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Joined: Jan 2022
Posts: 15
We allow unmarried individuals living at the same property to be on the same loan application. In this case, does only one of the borrowers need to confirm receipt of the CD because they are on the same application, or do both need to confirm receipt because they are not married?

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#2266986 - 02/28/22 06:08 PM Re: Timing for Closing-Receipt of CD Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
Acknowledgement is not required just delivery. Unless the loan is subject to rescission, delivery to one is delivery to all.
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#2266988 - 02/28/22 06:21 PM Re: Timing for Closing-Receipt of CD rlcarey
Tmbg99 Offline
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Joined: Jan 2022
Posts: 15
Thank you!!

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#2267129 - 03/02/22 09:05 PM Re: Timing for Closing-Receipt of CD Likes to Comply
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
I'll just pop in here to say that if the unmarried applicants happen to be joint owners of the property and the transaction is rescindable, each applicant must timely receive their own copy of the closing disclosure and also receive the notice of right to cancel.
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