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#2236002 - 04/30/20 08:13 PM Waving Rescission - NORTC Required at Closing
Annie Offline
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If a borrower waives the rescission period on a refinance due to a bona fide personal emergency and provides an appropriate signed request/notice that is approved by the lender, must the lender provide the copies of the Notice of Right to Cancel to the borrower at the closing?

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#2236004 - 04/30/20 08:17 PM Re: Waving Rescission - NORTC Required at Closing Annie
raitchjay Offline
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OK
I see nothing in 23(e) that would negate the requirements in 23(b). IOW, i believe the rescission notices are still required.
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#2236005 - 04/30/20 08:17 PM Re: Waving Rescission - NORTC Required at Closing Annie
rlcarey Offline
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Sort of would be counterproductive, I would think?
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#2236007 - 04/30/20 08:22 PM Re: Waving Rescission - NORTC Required at Closing Annie
raitchjay Offline
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OK
I guess i just see the rescission notices in this scenario as a sort of marker.......'you have the right to rescind this loan', (which is true), but elsewhere in the file, you will have documentation that they are waiving that right. But i get your point too Randy.

Honestly, in my 13 years, we've yet to have used a rescission waiver--that might change soon with Covid-19, we'll see.
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#2236010 - 04/30/20 08:26 PM Re: Waving Rescission - NORTC Required at Closing Annie
Annie Offline
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What would happen if the borrower tried to rescind the transaction within the 3 days, but after the loan funded? I'm assuming the lender would say, sorry too late or something to that effect. In other words, your waiver trumps the rescission.

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#2236011 - 04/30/20 08:27 PM Re: Waving Rescission - NORTC Required at Closing Annie
Adam Witmer Offline
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From the 4/28/20 final rule:

"Under the TRID Rule and the Regulation Z Rescission Rules, however, after receiving the required disclosure(s), a consumer may modify or waive these waiting periods if the consumer determines that he or she needs credit extended to meet a bona fide personal financial emergency."

It seems to me the rescission waiver should technically happen at closing, right after they sign the original rescission notice.
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#2236012 - 04/30/20 08:28 PM Re: Waving Rescission - NORTC Required at Closing Annie
Adam Witmer Offline
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Originally Posted by KAJ8484
What would happen if the borrower tried to rescind the transaction within the 3 days, but after the loan funded? I'm assuming the lender would say, sorry too late or something to that effect. In other words, your waiver trumps the rescission.

If the waiver complies, yes.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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#2236018 - 04/30/20 08:57 PM Re: Waving Rescission - NORTC Required at Closing Annie
rlcarey Offline
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Well, it does appear to be an interesting question. While to waive the seven and three business day prior to closing,
19(e) & (f) specifically require the waiver after the delivery of the LE and CD disclosures. But .23 does not specifically address it regarding the RofR disclosure.
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