Skip to content

Eligibility to Rescind

Answered by: 

Question: 
On a home equity loan, if there is anyone over the age of 18 living in the home at the time the loan is approved, do they have to sign the deed of trust even though they are not on the original deed of trust?
Answer: 

No. To be eligible to rescind a loan, the person living in the home must also be an owner. Section 226.2(a)(11) defines "consumer" as:

a cardholder or a natural person to whom consumer credit is offered or extended. However, for purposes of rescission under Section Section 226.15 and 226.23, the term also includes a natural person in whose principal dwelling a security interest is or will be retained or acquired, if that person’s ownership interest in the dwelling is or will be subject to the security interest.

First published on BankersOnline.com 6/3/02

First published on 06/03/2002

Filed under: 
Filed under security as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics