Vendor Guru Q&A - Lending

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Latest Lending - Right of Rescission Topics

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.

Right of Rescission if Living on Prop in Mobile?

06/17/2018

We are refinancing a construction loan to permanent financing. The borrower lives on the property in a mobile home that will be sold once the borrowers move into the newly constructed home. Because they are living on the property, would there be right of rescission on the refinance of the construction loan?

The Truth-In-Lending Act or Res Mtg. Transaction

05/06/2018

Borrower A & B are purchasing residential property from Seller C. Borrower A & B already live at this residential property and pay rent. Since this is their primary residence would they have a right to rescind (under The Truth-In-Lending Act) or would this fall under the "Residential Mortgage Transaction" and be exempt?

Right of Rescission-Loan Effective Date

04/22/2018

A borrower signs the Note and receives the rescission disclosure and all the other disclosures on the Note date. After the rescission period passes and the funds are disbursed, can the effective date of the loan that interest begins accruing be the Note date or the date the funds were actually disbursed?

ROR Apply to Agriculture 1st Mtg. Land Purchase?

10/22/2017

Does ROR apply to an Agriculture 1st Mortgage land purchase loan when taking a 2nd mortgage equity lien on the borrower's residence? Borrowers are not full-time farmers and the loan is made to them individually (not a corporation or "business").

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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.

2nd Mortgage w/ 1st Already in Escrow

03/17/2019

We are doing a second mortgage where the first mortgage is already in escrow. 1.) Should we disclose the estimated escrow on page 1 of the Loan Estimate with No for being in escrow or should we completely leave them off since the borrower is already in escrow. 2.) On Page 4 of the Closing Disclosure how should we disclose here as well, and if we select no escrow, our only options are because the customer declined it or your lender does not offer one. Neither of these fit our situation because the customer is already in escrow with us, so they didn't decline it nor did we not offer one.

Who handles complaints?

03/17/2019

Should we have one or more employees that are designated to handle all customer complaints? Should all complaints be referred to them no matter who initially receives the complaint?

Should A ITIN Form Be In A Loan File?

03/17/2019

Should a ITIN form be in a loan file?

Hazard Insurance-Additional Insured or Interest?

03/17/2019

On a Deed of Trust-secured loan, hazard insurance is in the name of the lessee, loan is in the name of the property owner. Do we need to add the property owner as an additional insured or an additional interest?

Closing Costs Date LE- Intent to Proceed

03/10/2019

I only added 9 days for the closing costs expiration date on the Loan Estimate (LE). I counted the day the LE was issued as one of the 10 days. The borrowers have already signed the Intent to Proceed. What happens now? The lender says I have to re-app the loan and start over. I wanted to know what you think.

Latest Lending - Right of Rescission Topics

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