Posted by Dennis_IN on 2/22/09 7:15pm
Msg #278447

Anybody close a 5/3ed refi funding the same day and

it's their primary residence? I did one over the weekend and they had me fax HUD, Note & TIL for funding. HUD showed it funding the same day therfore there was no RTC. Strange? I was going to call title on Mon for clarification. Any thoughts?

Reply by PAW on 2/22/09 7:50pm
Msg #278448

Original mortgage may not have been as "primary" residence. Or there may be other extenuating circumstances that you are not aware of. Whatever the reason, it's up to the lender to determine whether or not the borrowers/homeowners would be entitled to a rescission period. They (the lender) are the ones on the hook if things go sour.

Reply by MichiganAl on 2/22/09 7:59pm
Msg #278449

I do a lot of them

No RTC required. They're doing a refi with the same lender.

From Reg Z:

(f) Exempt transactions. The right to rescind does not apply to the following:

(2) A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation.

Reply by bfd110_IN on 2/22/09 10:23pm
Msg #278460

To put it in laymans terms.

The 5/3 deals you are seeing without RTC is because they are not giving out cash. The rate or term is being reduced and it is the same lender. RTC is not required on these deals. If they got their system fixed, you shouldnt see a RTC in the package. I questioned it at first. Now if they are paying someone else off or cashing out, you will see the RTC.

Reply by janCA on 2/23/09 9:54am
Msg #278469

Good info. Thanks. n/m