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#392625 - 07/27/05 10:04 PM HOEPA
Anonymous
Unregistered

We think we have uncovered a violation for a loan that closed 3 months ago. No HoEPA disclosures were given or signed. Customers were properly given the opportunity to rescind. Upon completing the calculations during the review process, we have determined that it is a HOEPA loan. Normally, these calculations are done before the loan closes.
What do we need to do to correct this situation? Do we need to reimburse the borrower?

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Lending Compliance
#392626 - 07/27/05 10:21 PM Re: HOEPA
Cowboys Fan Online
Power Poster
Joined: Dec 2002
Posts: 4,615
SC
Cllick me Scroll to Dan's reply
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#392627 - 07/28/05 04:52 PM Re: HOEPA
Anonymous
Unregistered

Thanks for the link. I am sure we have a violation but now what do we do?
We are thinking about printing up an accurate disclosure to give to the borrowers and a new rescission notice giving them the right to rescind again as they did not receive all required disclosures prior to closing.
Any thoughts or suggestions?

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#392628 - 07/29/05 01:55 PM Re: HOEPA
Great River Offline
Member
Joined: Feb 2004
Posts: 64
Iowa
I would answer this the same way most of the gurus answer any recission violation. You can't go back and fix what you have done wrong. They have 3 years right of recission because not all of the required disclosures were provided. The only way to get yourself clear of that is to re-write the loan. The fact that the violation happened doesn't go away, but the 3 year right of recission does if you do it right the second time.

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