Posted by curious on 2/1/05 3:51pm
Msg #19055

right to cancel?

I did a loan doc signing Friday (California) that did not contain a "right to cancel"... Is that normal? Mandatory?
Also, a signing from Saturday... the broker sent back docs to me, the broker printed them to small to record so now new docs need 3 new sigatures. Since this is his fault and not mine do I charge to go out again? And if so, what would be a fair price?

Thank you!

Reply by Charm_AL on 2/1/05 4:00pm
Msg #19057

Right to Cancel accompanies a refi. If it was a purchase, then it shouldn't have a RTC
Also, the companies expect us to go back at a reduced or no fee if the mistake is ours. I think I would charge 75% of my orignal fee to go back and try to retain the biz. Afterall, it's just like doing the job from scratch

Reply by curious on 2/1/05 4:08pm
Msg #19059

Thank you! Since this was only my second signing, I just wanted to be "on top of things" Both signings had some pretty major issues with them.
Also, do you get much business from brokers? Both said they don't typically call notaries, the title company does... I find it odd my first jobs are from 2 different brokers.

Reply by Charm_AL on 2/1/05 4:19pm
Msg #19060

mortgage brokers? I wish...
All of my signings have been thru signing companies that I've listed with or found me here. Thankfully I'm operating at 100% success both with the companies and clients so far. I know that'll change here at some point. I want to do about 40-50 before I take on a Title company

Apply to Integrated Real Estate Processing and At Home Signings...they are giving me repeat biz and checks!

Good Luck...I don't get nervous anymore before a signing!!! and I've done 10 I think, it's a good thing when they don't call you back after a signing Except of course to give you another job!

Reply by curious on 2/1/05 4:58pm
Msg #19062

Thank you so much for the positive feedback! Would it be okay to get your email so I can keep in touch off the boards? If not, that's okay
Kim

Reply by Ted_MI on 2/1/05 6:48pm
Msg #19068

Charm,

Your statement "Right to Cancel accompanies a refi" needs to be modified a bit. RTC can also accompany a HELOC. But the key to both of these statements is if one is dealing with a principal residence. RTC is not mandated for second residences nor investment property.

I just returned from handling a purchase mortgage (for a time share), and there was a ten day right of recission period. Think it may have been mandated by some Michigan law, I recollect.

Reply by Charm_AL on 2/1/05 7:11pm
Msg #19072

Got it, thanks

Reply by ColleenCA on 2/2/05 8:04am
Msg #19127

I'm sorry, but I am confused. A "Right To Cancel" is not included in a new home loan? I have not been hired (yet) by any company that I have signed on with, so I am completely ignorant. If this is the case, what recourse during the signing do we have if the borrower is nervous and doesn't want to sign? Other then calling the lender direct or the signing service if the borrower has questions and won't sign, what do you do during a new home loan? Thanks!

Reply by BrendaTX on 2/2/05 9:26am
Msg #19130

No RTC in Texas on Investment property refi/helocs. Don't know about the rest of the world.

Reply by Art_MD on 2/2/05 9:35am
Msg #19131

Re: right to cancel federal law

I believe that the RTC is dictated by federal law for principle residences. 2nd homes are not covered.

Story I heard, it may be just a story, is that the government passed the laws in response partially because of roofing salesmen. They would scare a little old lady into believing that she had to get $20,000 of repairs done to the roof or the house would fall down/ be condemned. To protect people from high pressure door to door salesmen, laws were passed.

Art

Reply by ColleenCA on 2/2/05 9:48am
Msg #19132

Re: right to cancel federal law

Yes, that's what I thought. In California any loan (refi or 1st time) for principle residence always includes the RTC. Experienced CA notaries, is this correct?

Reply by PAW_Fl on 2/2/05 12:19pm
Msg #19161

Re: right to cancel federal law

Refi's (except for streamlines) must have an RTC. 1st time purchases do not have an RTC, as mandated by the Truth In Lending Act. However, a lender may, at their option, provide a rescission period for loans not covered by the Act, or extend the period beyond the 3 days as mandated by law.

Reply by PAW_Fl on 2/2/05 12:15pm
Msg #19159

A federal credit law gives you three days to reconsider a signed credit agreement and cancel the deal without penalty. The "right to rescind" or "right to cancel" is guaranteed by the Truth In Lending Act. You can rescind for any reason but only if you are using your principal residence—whether it is a condominium, mobile home, or house boat—as collateral, not a vacation or second home.

Under the right to rescind, you have until midnight of the third business day to cancel the credit transaction. Day one begins after all three of the following occur:

* you sign the credit contract;
* you receive a Truth in Lending disclosure form containing certain key information about the credit contract, including the annual percentage rate; finance charge; amount financed; and payment schedule; and
* you receive two copies of a Truth in Lending notice explaining your right to rescind.

For rescission purposes, business days include Saturdays but not Sundays or legal public holidays. For example, if the events listed above take place on a Friday, you have until midnight on the next Tuesday to rescind.

During this waiting period, activity related to the contract cannot take place. The creditor may not deliver the money for the loan. If you’re dealing with a home improvement loan, the contractor may not deliver any materials or start work.

If you decide to rescind, you must notify the creditor in writing. You may not rescind by telephone or in a face-to-face conversation with the creditor. Your written notice must be mailed, filed for telegraphic transmission, or delivered if by other written means, before midnight of the third business day.

If you cancel the contract, the security interest in your home is also cancelled, and you are not liable for any amount, including the finance charge. The creditor has 20 days to return all money or property you paid as part of the transaction and release any security interest in your home. If you received money or property from the creditor, you may retain it until the creditor shows that your home is no longer being used as collateral and returns any money you have paid. Then, you must offer to return the creditor’s money or property. If the creditor does not claim the money or property within 20 days, you may keep it.

If you have a bona fide personal financial emergency—such as damage to your home from a storm or other natural disaster—the law allows you to waive your right to rescind and eliminate the three-day period. To waive your right, you must give the creditor your own written statement describing the emergency and stating that you are waiving your right to rescind. The statement must be dated and signed by you and anyone else who shares in ownership of the home. But remember: if you waive your right to rescind, you must go ahead with the transaction.

The right to rescind does not apply in all situations when you are using your home for collateral. Among the exceptions are:

* when you apply for a loan to buy or build your principal residence;
* when you refinance your loan with the same creditor who holds your loan and you don’t borrow any additional funds (streamline refinance); or
* when a state agency is the creditor for a loan.

In these situations, you may have other cancellation rights under state or local law.

Reply by Laes Lairaton on 2/2/05 12:27pm
Msg #19162

Amen PAW....it might be easier to understand by saying that a rtc is not required on a purchase money mortgage or a non-owner occupied property.