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BankersOnline.com Forums Dodd-Frank Final Rules Discussions TRID - TILA/RESPA Integrated Disclosures Rule Non Occupying Co-Borrower Currently On Title
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#2238564 - 06/24/20 03:09 PM Non Occupying Co-Borrower Currently On Title
CMSIngenue Offline
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I have read through the various BOL threads in regards to the issue but I am still confused as to whether a non-occupying co-borrower who is currently on title and will continue to be on title is entitled to the Pre-Close CD.

Does the fact that this borrower will not occupy the property as their primary residence mean they are not entitled to right of rescission even though they are liable on the credit obligation and will be on title?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2238566 - 06/24/20 03:20 PM Re: Non Occupying Co-Borrower Currently On Title CMSIngenue
Skittles Offline
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For rescission to apply - the individual must have ownership interest in the property AND it must be their primary address. If they do not live in the property then rescission does not apply.
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#2238567 - 06/24/20 03:22 PM Re: Non Occupying Co-Borrower Currently On Title CMSIngenue
Skittles Offline
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One other thing - what I find extremely helpful here on BOL is the regulations section at the top of the page. I am out there constantly looking up various information within each regulation. While I do use the threads - actually being able to read the regulation is another source for review.
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#2238577 - 06/24/20 04:19 PM Re: Non Occupying Co-Borrower Currently On Title CMSIngenue
John Burnett Offline
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Skittles -- As the "keeper" of those Regulations pages, I invite any "heads up" alerts you might send me if you identify an error or omission.

Clearly, we don't include ALL the regulations that might affect every bank or credit union, since our focus is on compliance. And where there is duplication of regulations among the financial institutions regulatory troika, we have the Fed's version. For example, we don't have the OCC or FDIC regulation on "Loans in areas having special flood hazards" because the Fed has essentially the same requirements in section 208.25 of its Regulation H.

You can either send me a PM via the Threads or send me an email.

Last edited by John Burnett; 06/24/20 04:25 PM.
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#2238579 - 06/24/20 04:30 PM Re: Non Occupying Co-Borrower Currently On Title CMSIngenue
Truffle Royale Offline

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To answer the first part of your question, CMS, yes, all borrowers must get a copy of the CD.
If, however the collateral is not their primary residence, then they do not get ROR.
However, I have seen many banks opt to give them one anyway along with the Borrower.

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#2238582 - 06/24/20 04:53 PM Re: Non Occupying Co-Borrower Currently On Title Truffle Royale
rlcarey Online
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Originally Posted by Truffle Royale
To answer the first part of your question, CMS, yes, all borrowers must get a copy of the CD.


That is not a true statement however.

1026.17(d):

In rescindable transactions, the disclosures required by § 1026.19(f) must be given separately to each consumer who has the right to rescind under § 1026.23.

In transactions that are not rescindable, the disclosures required by § 1026.19(f) may be provided to any consumer with primary liability on the obligation.
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#2238614 - 06/24/20 07:35 PM Re: Non Occupying Co-Borrower Currently On Title John Burnett
Adam Witmer Offline
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Originally Posted by John Burnett
As the "keeper" of those Regulations pages...

I would like to add that, John, you do a fantastic job. I was first introduced to the BOL regulation pages in the mid-2000's and have used them almost exclusively ever since. Rarely do I see an error (and I will happily forward those to you going forward) and find the format and editor's notes extremely helpful.
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