Thread Options
#2222990 - 10/03/19 08:12 PM Refi - Closing and Funding Same Day
parker1962 Offline
Junior Member
Joined: Jul 2019
Posts: 32
If a refinance loan closes and funds the same day without bona fide emergency, what are the steps to remedy this? Looking for direction, thank you in advance.

Return to Top
Lending Compliance
#2222991 - 10/03/19 08:18 PM Re: Refi - Closing and Funding Same Day parker1962
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
Do you mean rescission was required and not provided?
_________________________
My Opinions Only

Return to Top
#2222995 - 10/03/19 08:39 PM Re: Refi - Closing and Funding Same Day Skittles
parker1962 Offline
Junior Member
Joined: Jul 2019
Posts: 32
Correct - unless there are other scenarios besides an emergency that would cause the rescission period to not be required?
Last edited by parker1962; 10/03/19 08:40 PM.
Return to Top
#2222997 - 10/03/19 08:49 PM Re: Refi - Closing and Funding Same Day parker1962
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,301
Galveston, TX
Only if you were the original creditor on the loan being refinanced and there was no cash out.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2222999 - 10/03/19 09:07 PM Re: Refi - Closing and Funding Same Day parker1962
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,963
TN
And if there was an emergency you need a handwritten note signed by the borrowers (all who have rescission rights) before the loan is funded.
_________________________
My Opinions Only

Return to Top
#2223014 - 10/04/19 12:04 AM Re: Refi - Closing and Funding Same Day parker1962
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,056
Toano, VA
This is a bell than cannot be unrung. Unless you had an exemption (as Randy suggested) and didn't recognize it, immediate funding of a rescindable loan is a TILA violation. Reflexively, I wanted to add "...and the rescission period is extended for 3 years", but that may not be the case. The 3-year extension only applies when a creditor fails to deliver the rescission notice or material disclosures.
_________________________
...gone fishing.

Return to Top
#2223054 - 10/04/19 03:43 PM Re: Refi - Closing and Funding Same Day parker1962
Kimo in Idaho Offline
100 Club
Joined: Jun 2019
Posts: 135
I agree with Richard, if you didn't provide the proper disclosures I would get those to the customer, unless it is well past closing then I would just leave it.

Return to Top
#2223074 - 10/04/19 05:18 PM Re: Refi - Closing and Funding Same Day parker1962
parker1962 Offline
Junior Member
Joined: Jul 2019
Posts: 32
Thank you everyone!

Return to Top

Moderator:  Andy_Z