Owner's primary dwelling, not the borrower

I know this is going t be a very strange scenario, please bear with me:

Mom and Dad are borrowing money. They do not own the home that is being taken as security nor do they live there.
The Daughter owns the home in her name only and she and her husband live their as their primary residence.
Wisconsin is a marital property state.

Mom and Dad do not get the right to rescind.
Daughter and Son-in-Law sign the mortgage and they also have the right to rescind.
Daughter and Son-in-Law should receive a copy of the CD?

Am I right?

That is correct. Each of them, as a consumer whose ownership interest will be subject to the mortgage on the dwelling that is their principal residence, gets a copy of the borrower's CloD and two copies of the notice of right to rescind.

Thank you very much John!

If the husband does NOT own the home, but it is his primary residence, why does he have to sign the mortgage (no ownership interest) or ROR (no ownership interest)?

There may be state law requirements related to the now ancient and largely outmoded concepts of dower and curtesy.

Wisconsin is a marital property state meaning the husband has an ownership interest by right of marriage.

^^^What Truffle said

Explanation - Some states have laws to prevent one person from selling the house from under their spouse leaving them no-where to go.