Posted by jb_CA on 12/1/05 1:18pm
Msg #79616

RTC ???.....Please help! TIA

I'm confused?
I am doing a signing and on the notice of right to cancel there is a section at the bottom of the doc that states:


Certificate of Noncancellation

Instructions to customer. If you decide not to cancel the transaction referred to above, please sign, date, and deliver this Certificate of Noncancellation to Lender at Lender's address shown above; do not do so sooner than midnight of _____________ or before midnight of the third (3rd) business day following the latest of the three events listed above.

What goes in this blank.....I am stumped. I have never seen this before on a RTC.
For example if signing on 12-1-05 would the blank be filled in with 12-5-05 or would it be filled in with the funding date? Haven't heard back from anyone on this yet and just curious what others put in this space.

P.S. In Reference to the 3 things posted above, they would be,

(A) the date of the transaction

(B) the date you received your Truth in Lending

(C) the date you received this notice of your right to cancel.




Thanks for any help you can provide on this.

Reply by Charm_AL on 12/1/05 1:43pm
Msg #79623

Yes the date 12-5-05 would go in the blank. They send their form in on the fourth day if they are not cancelling.

Reply by jb_CA on 12/1/05 2:39pm
Msg #79636

Do we fill in the blank or does the borrower do this themselves??

Reply by PAW_Fl on 12/1/05 2:53pm
Msg #79639

Always have the borrowers make any and all changes to the body of documents, including filling in the blanks. If there is a change made (crossed out data and penned changed data), have the borrowers initial the change.

For the notary certificate, only the notary should make changes. This includes the venue even if printed at the very top of the page as is often the case with affidavits and other sworn statements. Only the notary needs to initial the changes made by the notary in the notary certificate.

Reply by jb_CA on 12/1/05 2:59pm
Msg #79641

Gotcha!!!!!!!
I guess my question should be during the time of the signing does the borrower fill this date in and sign it or do they only have to do that on the 4th day when they return it to the lender?

Reply by JanetK_CA on 12/1/05 3:42pm
Msg #79663

It could be argued that if they sign it before their rescission period is over, they have forfeited their right to cancel (at least in theory). I've seen packages that have that form and ask for it to be signed and returned in advance, but I wouldn't ask a borrower to do that. You can instruct them that once their rescission period has ended, they should sign it and return it. BTW, to be picky, the end of the rescission period might be more than four days if it falls over a weekend or holiday, but hopefully you've already figured that out...

Reply by PAW_Fl on 12/1/05 4:21pm
Msg #79681

The way Reg Z is written, the borrower cannot arbitrarily waive their 3-day RTC. There are specific and constrictive guidelines to determine how the RTC can be waived. The notice of nonrecission cannot and does not nullify or supersede Reg Z. So, even if the borrowers were to sign it and date it so it could be returned with the docs, they 3-day RTC would still be in effect. However, by signing it and sending it in early, if the borrowers do decide to exercise their right to cancel, the lender may conveniently never receive the request and would have a certification that the borrowers did not exercise their right.

I do not advise the borrowers what to do with it, only explain what the purpose of the notice (or certificate) is for and let them make up their own minds if they wish to sign and return it with the docs or wait until the rescission period expires, per the actual instructions on the form.

Reply by PAW_Fl on 12/1/05 1:47pm
Msg #79625

The notice (or certificate) of noncancellation should not be sent back to the lender prior to the expiration of the right to cancel. So think about it.... .... .... .... What is the EARLIEST date that the noncancellation be executed? Now you should easily be able to fill in the blank space.

Reply by jb_CA on 12/1/05 6:59pm
Msg #79701

Paw, Charm and Janet....

Still haven't heard back from the lender on this. YIKES!!!!

I wanted to thank each of you for your insight regarding this. Thank you for sharing your wisdom. I always am learning from this job and from this board and appreciate your wisdom, laughter and even the challenge to think!!! I head out for this signing soon and feel I am prepared to explain this to the borrower more clearly.

Thank you again!!!