Rescinded loan then changed mind

Posted By: Many Hats

Rescinded loan then changed mind - 09/30/15 03:36 PM

What happens if a borrower rescinds a loan, and then changes their mind and decides not to rescind - all within the 3 day rescission period? Do you just disregard the first notice to rescind and move forward with the loan as it is (and document the file with a written note from the borrower)?
Posted By: NSF, CRCM

Re: Rescinded loan then changed mind - 09/30/15 04:39 PM

My understanding is that once they rescind there is no going back. If they change their mind then a new application must be taken.

Hopefully a guru will chime in to confirm or correct me.
Posted By: Rocky P

Re: Rescinded loan then changed mind - 09/30/15 04:55 PM

A rescission cancels the loan.
You can use most of the same documents for re-approval. Someone had mentioned in a post that the bank would be in a hard position to defend if they allowed the loan after rescission and the customer later claimed that the bank pressured them to take the loan when they really did not want to and had rescinded.
Posted By: Richard Insley

Re: Rescinded loan then changed mind - 09/30/15 08:52 PM

For the same reason that do-overs are not allowed in Russian roulette, I agree with Rocky.