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.
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.
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?
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.