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#703150 - 03/19/07 07:08 PM Interest During Rescission Period
Pepper's Sister Offline
Platinum Poster
Pepper's Sister
Joined: May 2005
Posts: 546
Midwest
Does Ohio allow interest to accrue during the rescission period? Thanks for any and all help.
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#703524 - 03/20/07 02:47 PM Re: Interest During Rescission Period Pepper's Sister
bgehres Offline
100 Club
Joined: Mar 2005
Posts: 126
I don't know about the law, but how are you going to explain to your customers that you'll be charging them interest for 3 days, but yet they won't have access to the funds?

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#703637 - 03/20/07 04:50 PM Re: Interest During Rescission Period bgehres
Pepper's Sister Offline
Platinum Poster
Pepper's Sister
Joined: May 2005
Posts: 546
Midwest
I don't know that I can......but I know that some states allow for interest to accrue during the rescission period, and some states don't. I was wondering what OH law allowed.
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#715405 - 04/12/07 04:18 PM Re: Interest During Rescission Period Pepper's Sister
Bill S Offline
Junior Member
Bill S
Joined: Feb 2003
Posts: 35
OH
I am not aware of any prohibition in Ohio against accruing interest during the rescission period.

Whether to do so seems to vary by lender -- some do & some don't. At one bank where I worked, one department did & another did not.

(Last I heard, Indiana did have a law prohibiting accrual of interest during the rescission period, perhaps to prevent lenders from "double dipping" -- earning interest on two loans at once -- when refinancing their own loans, or to protect borrowers from paying double -- interest to two lenders at the same time.)
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William J. Showalter, CRCM, CRP

Opinions expressed are mine only & are not legal advice.

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#723404 - 04/27/07 06:14 PM Re: Interest During Rescission Period Bill S
Sage Offline
Platinum Poster
Joined: Aug 2005
Posts: 914
But if the customer is refinancing to a lower interest rate it is to their advantage to start accruing at the new lower rate immediately. I agree you cannot accrue on both the existing and the refi.

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#723894 - 04/30/07 02:29 PM Re: Interest During Rescission Period Sage
Bill S Offline
Junior Member
Bill S
Joined: Feb 2003
Posts: 35
OH
You CAN accrue interest on both loans, barring a state law to the contrary. However, whether you WANT to (or, some might say, SHOULD) do so, may be another matter. The point is, unless a particular state has restrictions, lenders are free under federal law and regulation to earn interest on both loans during the rescission period.
_________________________
William J. Showalter, CRCM, CRP

Opinions expressed are mine only & are not legal advice.

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