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#2224033 - 10/21/19 01:08 PM Non-borrowing spouse
Questions Offline
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We have a refinance situation where we failed to provide a copy of the Closing Disclosure to the non-borrowing spouse. We did provide a copy of the right to cancel to the non-borrowing spouse. What kind of cure are we looking at here? It seems as if the 3 year rescission period would not begin since we provided the individual with the right to cancel notice, but I am not certain...

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TRID - TILA/RESPA Integrated Disclosures Rule
#2224053 - 10/21/19 04:42 PM Re: Non-borrowing spouse Questions
Kimo in Idaho Offline
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Rescission always starts at consummation and runs for three years if there is a failure to deliver disclosures. There are different schools of thought on the effect of providing all disclosures and new ROR after consummation, but if you are right after closing I would see it as advantageous to provide them and give a new waiting period. If it has been an extended period of time between consummation and discovery, it is probably best to leave sleeping dogs...and let the 3 years run. I'm sure others may have a different opinion on a "cure" action, but your liability will run no longer than 3 years after consummation.

1026.23(a)(3)(i) The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by paragraph (b) of this section, or delivery of all material disclosures, whichever occurs last. If the required notice or material disclosures are not delivered, the right to rescind shall expire 3 years after consummation, upon transfer of all of the consumer's interest in the property, or upon sale of the property, whichever occurs first. In the case of certain administrative proceedings, the rescission period shall be extended in accordance with section 125(f) of the Act.

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#2225851 - 11/19/19 03:48 PM Re: Non-borrowing spouse Questions
rhospa Offline
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Joined: Mar 2016
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Related to non-borrowing spouses - can we give information about a loan (loan balance) to a non-borrowing spouse?

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#2225854 - 11/19/19 04:24 PM Re: Non-borrowing spouse Questions
rlcarey Offline
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Galveston, TX
If the spouse has ownership in the property being pledged on the loan - why not?
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#2228469 - 01/08/20 02:15 AM Re: Non-borrowing spouse rlcarey
theloanbug Offline
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Joined: Sep 2005
Posts: 746
If non borrowing spouse is not on deed in the state of Oklahoma the spouse signs mortgage and RoR, correct? Does the NBS need a copy Closing Disclosure?
Last edited by theloanbug; 01/08/20 03:33 AM.
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#2228479 - 01/08/20 01:31 PM Re: Non-borrowing spouse theloanbug
theloanbug Offline
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In state of Oklahoma does the NBS need a copy of the closing disclosure and if they do then do they need to sign the Closing disclosure if we have the borrower sign the Closing Disclosure?

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#2228480 - 01/08/20 01:43 PM Re: Non-borrowing spouse Questions
rlcarey Offline
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Posts: 83,219
Galveston, TX
Official Interpretation

17(d) Multiple Creditors; Multiple Consumers

2. Multiple consumers. When two consumers are joint obligors with primary liability on an obligation, the disclosures may be given to either one of them. If one consumer is merely a surety or guarantor, the disclosures must be given to the principal debtor. In rescindable transactions, however, separate disclosures must be given to each consumer who has the right to rescind under § 1026.23, although the disclosures required under § 1026.19(b) need only be provided to the consumer who expresses an interest in a variable-rate loan program. When two consumers are joint obligors with primary liability on an obligation, the early disclosures required by § 1026.19(a), (e), or (g), as applicable, may be provided to any one of them. In rescindable transactions, the disclosures required by § 1026.19(f) must be given separately to each consumer who has the right to rescind under § 1026.23. In transactions that are not rescindable, the disclosures required by § 1026.19(f) may be provided to any consumer with primary liability on the obligation. See §§ 1026.2(a)(11), 1026.17(b), 1026.19(a), 1026.19(f), and 1026.23(b).
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2228481 - 01/08/20 01:44 PM Re: Non-borrowing spouse Questions
rlcarey Offline
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rlcarey
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Posts: 83,219
Galveston, TX
As to your second question, there are no regulatory signature requirements on TRID disclosures. Signature requirements are a lender or investor policy for documentation purposes.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2228608 - 01/09/20 12:09 PM Re: Non-borrowing spouse rlcarey
theloanbug Offline
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Joined: Sep 2005
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So we do give the spouse a Closing Disclosure or whomever is rescinding?

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#2228609 - 01/09/20 12:27 PM Re: Non-borrowing spouse Questions
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
A closing disclosure must be provided to all parties with the right of rescission, spouse or otherwise.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2228657 - 01/09/20 06:36 PM Re: Non-borrowing spouse rlcarey
LaLendingLady Offline
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Joined: Apr 2014
Posts: 39
What about a refinance of an existing loan (no new money) with the same lender when there is no rescission required and the grantors of collateral are not the borrowers? Must the grantors of collateral be provided a copy of the closing disclosure?

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#2228672 - 01/09/20 07:33 PM Re: Non-borrowing spouse Questions
raitchjay Offline
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Joined: Oct 2009
Posts: 9,086
OK
No....at least, not required under TRID. State laws might differ.
Last edited by raitchjay; 01/09/20 08:58 PM.
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