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#713622 - 04/09/07 07:47 PM Non-Borrowing Property Owner / Material Disclosure
anon2006 Offline
Platinum Poster
Joined: Oct 2006
Posts: 854
Situation:
On a home equity line of credit, you have two borrowers and one non-borrowing property owner. All three people have the right to rescind and all three people must receive "material disclosures"

Question:
What kind of format is your bank using for the material disclosures that are given to the non-borrowing property owner? How do you 'prove' the material disclosures were given to the non-borrowing property owner?

I know what is required by the regulation, I am interested in what type of format you use. Any information or suggestions would be helpful - thanks!

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Lending Compliance
#713747 - 04/09/07 10:55 PM Re: Non-Borrowing Property Owner / Material Disclosure anon2006
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,765
Central City, NE
Here's how we address this issue in our Advanced Lending Manual:

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When a 3rd party release of a principal dwelling is involved: If the 3rd party lives in the house and has an ownership in the house, the 3rd party must receive all disclosures (prepared for the borrowers) and a rescission notice. Banker’s Compliance Consulting suggests that the bank prepare a letter that may be signed by the 3rd party that attests to the fact that the 3rd party received a copy of the note, Truth in Lending disclosure, Right of Rescission notice, HUD-1 settlement statement and HOEPA disclosure if applicable.
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Hope this helps.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#713849 - 04/10/07 01:45 PM Re: Non-Borrowing Property Owner / Material Disclosure David Dickinson
anon2006 Offline
Platinum Poster
Joined: Oct 2006
Posts: 854
That does help - thank you

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#714422 - 04/11/07 12:14 PM Re: Non-Borrowing Property Owner / Material Disclosure anon2006
kitten Offline
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kitten
Joined: Jul 2006
Posts: 12,579
Not prison
I have this same question! This is spooky.

If we create a letter that says something to the effect of:

By signing below, I (we), (name), acknowledge that I (we) have received copies of the following documents: The Note, HUD -1, HOEPA disclosure, and ROR.

Of course, the actual document names will be included in the official letter. But will this be sufficient? Or can someone provide different sample language that would work better?

THanks!
_________________________
I shall call you Thunder Twonk. ~TfD

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