TRID Question

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Question:

We closed a refinance transaction on Monday and gave the 3 day right of rescission. The loan was for $250,000 and is a 15 year. This morning he contact us and they are starting to worry about the payment amount on the 15 year. They are asking if they can pay down $50,000 and change the term to a 30 year. We have not ever had this happen. Our question is does this trigger then to use the 3 day and cancel the transaction and start over or do we fund the loan into our MPF program, wait the 60 days and then do a modification?

Answer:

Since you have closed the loan already, my recommendation is that they sign the ROR document and then you redo the transaction. It would be cleaner and help to avoid risk to the Bank. Granted they will have all the waiting periods again (LE, CD, and ROR) but they chose to change it after the signed the loan paperwork.