Skip to content
BOL Conferences
Thread Options
#39541 - 10/30/02 02:53 PM RoR - Waiver
SouthoftheBorder Offline
Gold Star
Joined: Feb 2002
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?...

Return to Top
Lending Compliance
#39542 - 10/30/02 02:58 PM Re: RoR - Waiver
Andy_Z Offline
10K Club
Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
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.
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

Return to Top
#39543 - 10/30/02 03:18 PM Re: RoR - Waiver
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,351
The sad part is that they will probably be able to go out and find a bank that will waive the ROR for them.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#39544 - 10/30/02 03:24 PM Re: RoR - Waiver
Anonymous
Unregistered

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.

Return to Top
#39545 - 10/30/02 03:34 PM Re: RoR - Waiver
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,351
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....
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#39546 - 10/30/02 03:35 PM Re: RoR - Waiver
Skittles Offline
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
Explain it to consumers? I have enough difficulty explaining it to the lending officers.
_________________________
My Opinions Only

Return to Top
#39547 - 10/30/02 03:39 PM Re: RoR - Waiver
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,351
Weeeelll, most lenders are capable of understanding.....they just have a self-imposed mental block.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#39548 - 10/30/02 04:30 PM Re: RoR - Waiver
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
I couldn't agree with your stmt more!
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

Return to Top

Moderator:  Andy_Z