I think I have read every thread about ROR's; seems like most say there is no cure after the fact for a wrong one. Would like input, though,as just found out previous compliance officer instructed doc dept to do this, as it has been a common issue. By the way, the loan is a HELOC:

Loan date on ROR is 5/29;
Letter (a) on ROR says date of opening your account is 5/29;
"How to cancel" says midnight of 6/2;
Customer signed and dated 5/30, there were no cross outs and initials when he signed to correct the dates at that time;
Loan disbursed on 6/3.

So now, doc dept tells me they were instructed by previous compliance officer to keep wrong ROR infile, issue new ROR, dated and signed by customer, dated and signed, (for example today, the 6th),with new rescission date 3 days out. The HELOC is disbursed, active, and has a balance, so logic makes me wonder what good does this do when funds have already been disbursed? Yes, we found our error, but would the regulators really think this a cure, and does this protect us from the 3 year rescission?

There is no cure for wrong/incorrect ROR. You just have to wait it out. Hopefully they don't continue to make the same mistake.

As Hawksfan said, there is no cure. The time has passed and you can't go back in time.
However, for the example you gave what was incorrect was how the statement of "I did not rescend" was handled. It appears you did wait until after the 3 bus day rescission period to advance funds. (May be less of an issue for your examiner, but still an issue). Your risk is the 3yrs for the customer to say, "Hey, I did rescend and I want all my money back".

Looking at the language on the ROR, it states within 3 bus days from whichever event comes last, and the third event (c) says "the date you receive this notice of...". Further down it says "you must send notice by midnight of (date) OR midnight of the 3rd bus day following the latest of the three events...".

My thinking is this means regardless of the date we put in there, we would calculate the date based on the borrower signature. If this is the case, would there really be a need to cross out/initial or even rediclose because the customer signed a day later than the form, necessitating a day later for the rescission date?

No, sorry I wasn't clear--the customer never recinded. The date they signed was the next day after the dates of the loan docs. in other words, docs were prepared, dates input, but they didn't sign till the next day.

BUMP

Not sure I understand your question. Did you give the customer the ROR at closing? If so, that's the date you start counting from. I'm not understanding how you would not have given it to them at closing and they'd sign the next day.

No matter what, you have an incorrect, irreparable ROR on this loan. The borrower has three years to rescind.

And you have a tough job ahead of you trying to untrain a department that has absolutely WRONG info in their heads. Good luck!

Sounds like docs were printed for one day, but the customer signed the next. Were all loan docs dated incorrectly?

The second RoR form will not correct any perceived error in the first RoR form. Your loan doc dept is wrong. (Where I used to work, we had been told to do similar corrections by well-meaning, but ill-informed "decision-makers".)

Mint Julep, that is exactly what happened--docs dated one day, signed on the next day. My contention is that even tho the docs had the midnight third day typed in, we need to count days before disbursal from the date signed, as delineated in the (c) section, which says "from whichever of the following events occurs last", "the date you received this notice....".

I am really concerned that they have been reissuing ROR with new dates when the loan was already disbursed. This implies that the customer now recind well after the fact. I would think auditors would really question this practice apparent in the file.

Now I understand how you got where you did, Marnie.

So your docs are all dated the day before closing but consistently signed with the actual date this closed, right? The three days would start at the time of closing, in this case the signature date.

IMO, you've got another problem besides the ROR, tho. This loan didn't exist until the signature date but all your docs say it existed the day before. Everything about this loan is off one day, including interest and payoffs, etc. Sounds like some major training needs to be done to include reprinting the closing package with the correct dates.

I appreciate your input, and you got that right, Truffle--there are other problems, and the ideal is to reprint docs. But I can see this happening, with docs drawn but customer doesn't show up till next day; I would rather they sign and date it correctly than have the loan officer tell them to backdate, which happens also.

We took the date on the docs rather than sig date, by which to determine disbursement date, which means we disbursed a day too early. I am going to put an end to the "new" ROR, which are being done, and therefore getting new sigs from customers on loans already disbursed.

Wow! People don't show up fo their closings? Seriously, that's not a problem we have here. And LOs know that if the borrowers don't show up, throw the closing package away. Guess people want their money too much not to show up.