ROR - Closed for business Sat

I would like to Poll you guys for the following question:

If 1 of your 5 Investors tells you they will not Fund your loans because you count Saturday's as a Business Day on your Right of Rescissions, (their reasoning is we are Closed for Business on Saturdays), would you change your procedures and no longer count Saturdays on ALL loans where ROR's are applicable? I don't see how an Investor can govern our Compliance Dept concerning this Regulation when it clearly states for purposes of ROR you count Saturday's even if you aren't open for substantial business.

We don't sell loans (anymore) and while i agree with you that investors can and are often sort of dumb on stuff like this, your poll question really boils down to:

Do you want to keep selling loans to this investor or not? If you're ok not selling to them and can find a different investor, then by all means i'd kick them to the curb (and not change your procedures). But if not, if they're the ones buying the loans, then you're gonna have to play by their rules, like it or not.

So it's sort of hard to answer the question--it depends on how important to your bank's loan operations this particular investor is....IMHO.

I might add.....i do sympathize...and this is why i'm GLAD we don't sell loans anymore.

If 1 of your 5 Investors . . . .

I would as of today be dealing with only 4 investors.

I'd push back on the investor and use the citation in this thread.
The people pushing back are usually front line so I do an end run and take the issue to the investor's compliance department. Proud to say, when hit with chapter and verse, I usually win.

I agree with everything said above. I've had many clients tell me "the investor says I have to ____" (insert incorrect regulatory issue here). When it comes to overkill, you may have to play by their rules. For instance, many investors require a RofR when a construction converts to permanent financing even though this is clearly a Residential Mortgage Transaction which is exempt. However, as raitchjay said, if you want to sell loans to them, you plan by their rules.

However, I've also seen where investors require too much money to be in an escrow or require a bank to collect for escrow items (at closing) that will fall within the escrow account computation year. In this case, the investor is wrong and making the closing bank perform an illegal practice. As Truffle said, that's when I call the investor's compliance department. And, as Truffle said, I usually win. In fact, what we find is the compliance officer/department has not endorsed or was not aware this was going on and is glad to hear we are reporting this practice.

It's called the golden rule. Third party stakeholders can make all the rules they want...and you are obliged to follow them as a matter of contract, not law.