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#39541 - 10/30/02 02:53 PM RoR - Waiver
SouthoftheBorder Offline
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Posts: 335
The South
We are refincancing a 1st lien FHA loan and have been asked if the borrowers can waive their right to rescind, because if the rescission period ends on Nov 4th, the borrowers will have to pay an additional month of interest to FHA...+/- $900 ( does FHA charge 30 days of interest even if loan is paid off on day 4? seems absurd to me, but I'm unfamiliar with FHA lending). However, even if they are charged an additional 26 days of interest, I do not see that this situation would be a bona fide personal financial emergency.....even though the borrowers do see it that way..... Any thoughts?...

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Lending Compliance
#39542 - 10/30/02 02:58 PM Re: RoR - Waiver
Andy_Z Offline
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It is not a bona fide personal emergency, in my opinion. And it doesn't meet the test to waive the rescission. They should have applied earlier.
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#39543 - 10/30/02 03:18 PM Re: RoR - Waiver
swiggles Offline
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The sad part is that they will probably be able to go out and find a bank that will waive the ROR for them.
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#39544 - 10/30/02 03:24 PM Re: RoR - Waiver
Anonymous
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That's true, but we can't worry about 'other' financial institutions. It's kind of like asking your child 'well if Johnny jumped off the roof would you?'. Also, I don't think another lender would be able to close in time to fund by the 4th.

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#39545 - 10/30/02 03:34 PM Re: RoR - Waiver
swiggles Offline
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I'm not worried about other financial institutions. They can make their own beds and lie in them as far as I'm concerned. However, I DO get tired of hearing about the "bank down the street" that will accomodate a consumer by doing something that is clearly against federal regulations, state law, or simply is unethical behavior. We try to explain regulations to consumer's, but sometimes that is construed, by the consumer, as passing the buck. It's just something we, as bankers, have to live with. Isn't it fun?! I mean....
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#39546 - 10/30/02 03:35 PM Re: RoR - Waiver
Skittles Online
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TN
Explain it to consumers? I have enough difficulty explaining it to the lending officers.
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#39547 - 10/30/02 03:39 PM Re: RoR - Waiver
swiggles Offline
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Weeeelll, most lenders are capable of understanding.....they just have a self-imposed mental block.
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#39548 - 10/30/02 04:30 PM Re: RoR - Waiver
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,677
SmallTown, USA
I couldn't agree with your stmt more!
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