We do a lot of construction loans. Thee are one year, temporary financing loans. Our permanent financing of these mortgages have been treated as purchases for years. We converted to a new LOS and it is giving us compliance alerts for the same practices. Should these be refinances for HMDA purposes and should they have a rescission period?
If borrower rescinds a loan, what loan documents must be kept and how long does the bank need to keep them?
If a lender has a borrower sign loan documents but has some liquidity issues that extend the funding beyond the rescission period, would that be a UDAP violation?
In this example, say the lender expected liquidity to come in from a trade before the rescission was up on the loan. However it was held up for a week. The loan will fund, but a week late. The property is in California if that matters.
We have had recent discussions regarding the rescission rules when applied to a TRID real estate purchase transaction. As the bank, we are financing the purchase of a new home; however, the consumer is using the home being purchased, as well as an existing property as collateral on their loan transaction. The use of an existing property is triggering the 3-day rescission period.
Per Kentucky law, a purchase transaction should be closed by an attorney. However, our lender is questioning whether or not consummation of the loan with the bank and the settlement by the attorney actually need to be dated the same day. He wants to close our loan 3 days prior to the closing with the attorney, so all funds will be available at said closing.
Is there a regulation you can cite that requires the loan transaction to be closed on the same day as the real estate settlement? I believe there are stipulations in regard to these requirements but having difficulty citing the reg.
Since Juneteenth falls on Sunday (2022) and is being observed on Monday, is Monday counted as a business day for rescission purposes if the
post office is closed?
Should there be a rescission on a HELOC where the borrower/owner is a revocable trust?
We have a consumer real estate construction to permanent loan pending. Does
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.
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?
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.