Right of Rescission - can we cure an error

During document review, it was noticed that the spouse did not execute a ROR, but did execute the remaining documents. We waited the appropriate time to disburse funds, but we just failed to have the spouse sign. Is there anyway to cure this exception?

Thanks in advance.

Let's make sure we're talking about the same things here. Execution of a right to rescind is done by the consumer when the consumer has had second thoughts and notifies the lender that he wishes to rescind the portion of the transaction that was subject to the right to rescind -- either the whole enchilada or the addition of a security interest, etc.

What I think you're alluding to is signing a line on a lender-retained copy of the notice of the right to rescind to acknowledge receipt of two copies of the notice. If that's the case, please know that there is no such acknowledgment required in the regulation, nor is there any provision for it on the model forms in the regulation.

And therefore you don't have a violation of Reg Z (you may have a policy exception, and the loan may not be accepted by a secondary market investor that demands the acknowledgment).

What you need to comply with Reg Z is the ability to demonstrate that you provided the required two copies of the form to the spouse. A signature is one way that's done by some lenders. Others are able to document their process.

And, by the way, welcome to Bankers' Threads.