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Latest Lending - Right of Rescission Topics

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.

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?

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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.

New Escrow on Existing Loan

09/22/2019

We had a customer ask to start a voluntary escrow account on an existing loan. Do we need a new agreement?

Max Fee for NSF Check Returned for CC Payment

09/22/2019

What is the maximum fee allowed for a NSF check which was returned for a credit card payment? And is there a maximum fee for late charges for credit cards?

Disclosing Payoff Amount on Closing Disclosure

09/22/2019

When disclosing the payoff of an existing lien on the collateral property, should the amount listed on page 3 of the Closing Disclosure just show the principal balance, or should it show the principal balance, plus the interest due? I do not believe the reg goes into detail on what the amounts listed should be. My thought is we would need to list the amount that would fully pay off that existing lien (principal, interest, late charges, etc. ). There have been discussions about not capitalizing off interest, but as long as we are not financing the interest due into the new loan amount, I do not see how we would be capitalizing off previous interest. In addition, if we list the full payoff amount, would we need to list just one payoff amount, or would we need to list separate lines for principal, interest and late charges on the Closing Disclosure? I believe either way would be okay, but my thoughts are we would just need to list one line item with the full amount.

Is loan to buy stock from ex-employee CRA reportable?

09/22/2019

Is a loan to a company buying stock from an ex-employee CRA reportable? It is secured by business assets.

Escrows, more than dirt

09/15/2019

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?

Latest Lending - Right of Rescission Topics

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