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#1768895 - 12/19/12 05:24 PM ROR & TILA
Ginlyn, CRCM Offline
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Ginlyn, CRCM
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Posts: 300
Oklahoma
Scenerio: "Son" (grown) wants to borrow $35,000 to pay off credit card debt. "Mom" is pledging a second mortage on her home for collateral. LO wants to close on loan within the three day ROR. Does closing have to wait seven days for TIL?

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#1768901 - 12/19/12 05:36 PM Re: ROR & TILA Ginlyn, CRCM
Truffle Royale Offline

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huh?
LO wants to close on loan within the three day ROR?
I don't understand that statement at all.

And yes, you have to observe the MDIA rules about closing.

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#1768907 - 12/19/12 05:52 PM Re: ROR & TILA Truffle Royale
Ginlyn, CRCM Offline
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Ginlyn, CRCM
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Oklahoma
Sorry. I wasn't clear on that. I found my answer in Reg Z. Thanks for the response.

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#1769019 - 12/19/12 08:46 PM Re: ROR & TILA Ginlyn, CRCM
Indy Banker Offline
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Originally Posted By: Ginlyn, CRCM
Sorry. I wasn't clear on that. I found my answer in Reg Z. Thanks for the response.


I've read multiple threads on this issue in the past (most of which resulted in me getting a huge headache!), and while there are very compelling arguments accompanied by pertinent regulatory citations, I get the feeling there is not industry-wide consensus on the applicability of early TIL (3-day after application/7 day prior to closing) required disclosure to non-borrowers with rescission rights in a mortgage transaction.

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#1769028 - 12/19/12 08:54 PM Re: ROR & TILA Ginlyn, CRCM
rlcarey Offline
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Galveston, TX
"Mom" is pledging a second mortage on her home for collateral. LO wants to close on loan within the three day ROR."

There is somethng wrong with a bank that would allow a debt consolidation loan be secured by someone's mother's house. They have no sense of reputational risk apparently. I see the headlines now. Bank kicks mom into the street after deadbeat son scams mother.
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#1769044 - 12/19/12 09:23 PM Re: ROR & TILA Indy Banker
RR Joker Offline
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The Swamp
Originally Posted By: bike4life
Originally Posted By: Ginlyn, CRCM
Sorry. I wasn't clear on that. I found my answer in Reg Z. Thanks for the response.


I've read multiple threads on this issue in the past (most of which resulted in me getting a huge headache!), and while there are very compelling arguments accompanied by pertinent regulatory citations, I get the feeling there is not industry-wide consensus on the applicability of early TIL (3-day after application/7 day prior to closing) required disclosure to non-borrowers with rescission rights in a mortgage transaction.


However, the loan would be subject to an intial 7 day wait, regardless and separate from the rescission period...so to the original poster, my opinion would be 'yes'. They have to wait 7, then another 3.
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#1769046 - 12/19/12 09:28 PM Re: ROR & TILA rlcarey
swiggles Offline
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swiggles
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Originally Posted By: rlcarey
"Mom" is pledging a second mortage on her home for collateral. LO wants to close on loan within the three day ROR."

There is somethng wrong with a bank that would allow a debt consolidation loan be secured by someone's mother's house. They have no sense of reputational risk apparently. I see the headlines now. Bank kicks mom into the street after deadbeat son scams mother.


Ha ha, Randy....well, I think a more accurate discription would be:

Mother = Idiot

I co-signed with my daughter on a car loan one time. I have given various people hammers with which to hit me in the head should I ever decide to do that again. Nothing real bad came of it and I never had to fork over a payment (actually...didn't have one to fork over!!) but I DID take some late payment hickys on my credit and I had four years of constant monthly worrying about that dern payment!!
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#1769057 - 12/19/12 09:44 PM Re: ROR & TILA RR Joker
Indy Banker Offline
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Originally Posted By: RR Joker
Originally Posted By: bike4life
Originally Posted By: Ginlyn, CRCM
Sorry. I wasn't clear on that. I found my answer in Reg Z. Thanks for the response.


I've read multiple threads on this issue in the past (most of which resulted in me getting a huge headache!), and while there are very compelling arguments accompanied by pertinent regulatory citations, I get the feeling there is not industry-wide consensus on the applicability of early TIL (3-day after application/7 day prior to closing) required disclosure to non-borrowers with rescission rights in a mortgage transaction.


However, the loan would be subject to an intial 7 day wait, regardless and separate from the rescission period...so to the original poster, my opinion would be 'yes'. They have to wait 7, then another 3.


Correct - sorry, I somehow deviated into the discussion as to the non-borrower's rights to receive copies of said disclosures not the applicability of MDIA to the transaction.

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#1769148 - 12/20/12 01:59 PM Re: ROR & TILA Ginlyn, CRCM
RR Joker Offline
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The Swamp
I thought so! laugh
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