Vendor Guru Q&A - Lending

Latest Lending - Right of Rescission Topics

Does Rescission Apply to Pending Loan?

01/05/2020

We have a consumer real estate construction to permanent loan pending. Does rescission apply?

Right of Rescission Rule Interpretation

11/17/2019

I need some help with the right of rescission rule interpretation. On a refi loan, if the borrowers receive all TRID disclosures on a Saturday but our offices are closed that day so their signatures would have to be made on Monday. My question is, when should the 3 day rescission period begin? On Monday- Wednesday ( based on disclosures received on Saturday) or Tuesday-Thursday ( based on the effective signing date of Monday)? Reg Z states: 1026. 15(a)(3) i. The period within which the consumer may exercise the right to rescind runs for 3 business days from the last of 3 events: A. The occurrence that gives rise to the right of rescission. B. Delivery of all material disclosures that are relevant to the plan. C. Delivery to the consumer of the required rescission notice.

Percentage of Loan Amount that Triggers Rescission

05/26/2019

We have a refinance loan by the same lender and the consumer is getting a small amount back. Is there a percentage of the loan amount that triggers a rescission?

Refi Not Rescindable if No New Money/Same Lender?

03/24/2019

I have a closed-end transaction secured by a principal dwelling which is being refinanced to another closed-end product (no new money). The original transaction provided a right of rescission. Please confirm that the refinance loan is not rescindable since it is with the same lender and no new money is being funded. I can't find a cite for this.

Info on Notice of Right to Cancel for New HELOC

03/03/2019

The previous Commentary to Reg Z at 1026.5b contained the following statement regarding a matured HELOC: "...A new plan results; however, if the plan is renewed (with or without changes to the terms) after the scheduled expiration. The new plan is subject to all open-end credit rules, including sections 226.5b, 226.6 and 226.15." I have not found any comparable interpretations by the CFPB since the CFPB took over responsibility for Regulation Z. I'm looking for any information that will support the need, or lack thereof, to require a Notice of Right to Cancel when a new HELOC note is executed after the existing HELOC has matured.

HELOC Increase-Rewrite As A New Loan?

12/23/2018

If a customer has an existing Home Equity Line of Credit and then approaches to increase the HELOC by an additional amount of money, can a Change in Terms Credit Agreement and Disclosure be used for that or do we have to rewrite the loan as a new loan request? Obviously, if we are able to use the Change in Terms agreement, a Modification of Mortgage would need to be prepared and filed of record. What about Rescission on the new money? Do we have to give them an actual Notice of Right to Cancel form or can we just wait 3 business days from the date of the Change in Terms before we fund the new money?

ROR Required on Streamlined Refinance?

12/09/2018

Is a Right of Rescission required on a streamlined refinance when only closing costs are being added to the loan? There is no cash out to the borrower.

Right of rescission Apply to Early Occupancy?

10/07/2018

We have a customer that has occupied a residence that they are purchasing, and they do not have another residence. Does the right of rescission apply to early occupancy in a purchase transaction? We have gone round and round with differing opinions.

Customer Steps to Waive 3 Day Rescission

09/02/2018

What does a customer need to do to waive the three-day rescission period?

State ROR for HELOC is Open-End Loan? (Appendix G)

08/19/2018

Does a Right of Rescission for a HELOC have to state that the loan is an open-end loan? All the rescission forms in Appendix G include reference to an open-end loan.

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Documentation for Addition to Loan

Question: If the bank has an existing loan secured by the borrower's primary residence and the bank then agrees to grant them additional funds, I would like to clarify the document

Procedures: Smoothing Out Regulation Relationships

One of the most confusing aspects of working in compliance is the way that different laws and their implementing regulations approach situations.

Best Practice for Saving Emails into Document Management System

10/25/2020

What’s the best way to collect and organize important emails in our document management system?

Escrows, more than dirt

10/25/2020

While auditing a mobile home loan I saw escrow statements. Isn’t this unnecessary since RESPA doesn’t apply when we don’t have real estate as our loan collateral?

Reg B and Small Business Lending

10/25/2020

I am looking to find what aspects of Reg B are applicable to small business lending. I am creating a line by line assessment and am curious if something like this exists.

Reporting Revenue on Small Business LAR

10/18/2020

When reporting revenue on the small business LAR can you please clarify the following for me: We have a loan program called "Low Doc" in which financials are not used in making the credit decision based on a number of factors, however we do have the revenue information from the customer. In order that these loans are not reported as a code 3 – and not counted in our CRA totals, is it appropriate in using the business revenues that the customer provided?

State's Public Records-Record Retention

10/18/2020

We want to know if there is a vendor or website our bank can utilize to quickly retrieve public records online from various Secretary of State offices, tax cards & tax bills to pay escrowed taxes, retrieve recorded real estate docs i.e. recorded Warranty/Quitclaim Deeds, MTG-DOT and AOR's. The majority of states have their records available online but behind a paywall where you have to pay for each individual page of each document. There's 25+ of us between Lending, Legal, and Compliance that need access at our bank to these docs. In my previous banking career, we utilized a website called NETRONLINE.com with a paid subscription but it appears it is no longer available. Is there a substitute?

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