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#2254926 - 06/07/21 03:23 PM Waiver of RoR
dutchbltz Offline
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Joined: Oct 2015
Posts: 143
If we're allowing a client to waive her right of rescission, and have her letter requesting waiver on file, do we still provide the notice of RoR in her closing package?

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Lending Compliance
#2254927 - 06/07/21 03:25 PM Re: Waiver of RoR dutchbltz
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,360
Galveston, TX
Why would you?? It is a very dangerous game you are playing though.
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#2254932 - 06/07/21 03:39 PM Re: Waiver of RoR dutchbltz
Rocky P Offline
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Joined: Jun 2003
Posts: 7,141
Florida
Make sure that it's a bonefide financial emergency!
Losing a deposit is not a financial emergency - it's bad planning. Losing a roof in a tornado is a financial emergency. Cancer treatment is a financial emergency, a 60% discount on a cruise good for 24 hours is not.

3 years to cancel a transaction is a pretty good penalty
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#2255023 - 06/08/21 07:14 PM Re: Waiver of RoR dutchbltz
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 9,942
Toano, VA
In 16 years managing a compliance program, I can only remember a handful of times when we allowed a waiver of ROR. When there's a waiver, the borrower's attorney (later, after the loan goes sour) can go to court alleging that the consumer never understood what s/he waived. There's also the possibility that the borrower's handwritten explanation of the "bonefide financial emergency" (your only evidence of the basis for approving the waiver) is insufficiently detailed to convince the court that there was truly a "bonefide financial emergency." A sympathetic judge might toss the waiver, allow delayed rescission, and cost you a lot of money.
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