Waiver of RoR

Posted By: dutchbltz

Waiver of RoR - 06/07/21 03:23 PM

If we're allowing a client to waive her right of rescission, and have her letter requesting waiver on file, do we still provide the notice of RoR in her closing package?
Posted By: rlcarey

Re: Waiver of RoR - 06/07/21 03:25 PM

Why would you?? It is a very dangerous game you are playing though.
Posted By: Rocky P

Re: Waiver of RoR - 06/07/21 03:39 PM

Make sure that it's a bonefide financial emergency!
Losing a deposit is not a financial emergency - it's bad planning. Losing a roof in a tornado is a financial emergency. Cancer treatment is a financial emergency, a 60% discount on a cruise good for 24 hours is not.

3 years to cancel a transaction is a pretty good penalty
Posted By: Richard Insley

Re: Waiver of RoR - 06/08/21 07:14 PM

In 16 years managing a compliance program, I can only remember a handful of times when we allowed a waiver of ROR. When there's a waiver, the borrower's attorney (later, after the loan goes sour) can go to court alleging that the consumer never understood what s/he waived. There's also the possibility that the borrower's handwritten explanation of the "bonefide financial emergency" (your only evidence of the basis for approving the waiver) is insufficiently detailed to convince the court that there was truly a "bonefide financial emergency." A sympathetic judge might toss the waiver, allow delayed rescission, and cost you a lot of money.