Posted by Charm_AL on 4/13/06 10:11am
Msg #113277

NNA..

just got this e-mail...

They claim that every day EXCEPT Sunday is a biz day. Well folks I have companies that do NOT count Saturday....anyone else??? They seem to 'generalize' Everything! Too bad for the newbies.

The Notice of Right to Cancel Form


By Ravon Taylor III
[e-mail address]
NSA Now: Issue #59 — April 2006


The Notice of Right to Cancel (NRTC) form might be regarded as one of the most confusing documents in any loan package. The NRTC allots the borrower three business days after the day of signing to thoroughly review the documents, and have any questions or concerns resolved by the loan officer or title company representative before the loan officially closes.
In many cases, the Notary must figure out the exact rescission deadline for each particular loan. The rescission deadline is three business days from the date of the signing at exactly midnight. For example, if a set of loan documents are signed on Tuesday, April 11, the rescission period would end on Friday, April 14, at midnight.

Business Days

A business day is defined as every day except for Sundays and federal holidays. Federal holidays that are not seen as business days include: New Year's Day, Dr. Martin Luther King, Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans' Day, Thanksgiving Day and Christmas Day.

As simple as that may sound, there are some cases in which a federal holiday may fall on a weekend and be observed the following Monday (for example, Christmas). With that in mind, is Monday an official business day? The answer is yes. Even though banks are closed, Monday would count as one of the three business days.

If you are still confused, log on to the NSA Section of NationalNotary.org and choose the "Rescission Calendar" option, which automatically calculates your rescission date online.

Where Does the Notary Sign?

The Notice of Right to Cancel form features two or three different signature spaces. NSAs should pay close attention to each signature space. Most notably, there is a signature space where the borrower signs only if he or she wishes to cancel the loan. It is critical that the borrower does not sign this line during a signing.

The borrower signs the acknowledgment portion of this form, which indicates that he or she understands the concept of the rescission period

Reply by Korey Humphreys on 4/13/06 10:14am
Msg #113279

Consider its' source.... 'nuff said n/m

Reply by Derrick/MT on 4/13/06 10:24am
Msg #113285

I do not see anything wrong with how they stated the RTC works. This is federally controled and everyday but Saturday is a business day when it is concerning the borrowers right to cancel and the listed holidays.

Reply by LilyMD on 4/13/06 10:54am
Msg #113304

Re: I have one that does not count Sat. as a busines day. n/m

Reply by Charm_AL on 4/13/06 10:56am
Msg #113307

Derrick, first - everyday but Sat is a biz day is wrong....Secondly, it is not fed controlled. You need to re-read my post, the first sentence. ***Some companies do not consider Sat a biz day whereas the NNA generally states Everyone does.*** wrong!

Reply by Derrick/MT on 4/13/06 12:25pm
Msg #113349

Your telling me that Reg Z is not a Federal Law( come on)? Do you want me to print it all here. Yes some businesses do not count Saturday but if you follow the letter of the law Saturday is considered a business day when calculating right of rescission and the only days that do not count are Sunday and federal holidays

Reply by Charm_AL on 4/13/06 1:18pm
Msg #113370

Again Derrick....You follow what the TC says the recission period is. Some give more time. It's up to them, we follow what the three day right is, because they have a right to a three day RTC...however it doesn't always work that way in GENERAL and I'll say it again...Some companies DO NOT consider Saturday a business day!....You don't need to type out the Reg Z
I don't get what you arguing about.

Reply by Derrick/MT on 4/13/06 1:37pm
Msg #113380

Was not meaning to sound like I was argueing with you. When you said that the right of recission was not federal that kind of threw me for a loop. I see your point that some companies do not count Saturday as a day of recission so in essence they are given an extra day, which in effect is a bonus for the borrower. I just wanted to make sure that people did not get confused and not consider Saturday ever as a work day and cause some borrowers loans to get messed up. By all means follow the instructions, but if no intructions fall back to the law and count Saturday as a work day.

Reply by Charm_AL on 4/13/06 1:39pm
Msg #113382

ok! we're on the same page!

Reply by Derrick/MT on 4/13/06 1:40pm
Msg #113384

Whew, that was a close one. lol

Reply by AngelinaAZ on 4/13/06 3:16pm
Msg #113410

Here's a quick question on that subject....

On the loans I have done that give extra time for the RTC there have always been two forms in the package... one that is the regular (RegZ) and one that gives the additional time. Does anyone know if it is mandatory to have BOTH included in the package? Can a lender substitute any form with their own timeline (as long as it is longer than 3 days) or do they add it on top of the regular form??? Just curious...

Reply by PAW on 4/13/06 4:47pm
Msg #113427

The "form" is not a federal form ...

... but the "contents" (aka disclosures) are what is required to be provided to all persons with an ownership interest in the property. Reg Z specifies what the disclosures are and that it must be provided to the recipients in written form and in duplicate. It doesn't state what the "form" is to look like, nor the contents other than the MINIMUM information. Therefore, the lender can provide a commonly accepted RTC form, or use one of their own design. Given that, then the lender has the option to extended the minimally required 3-days, per Reg Z, anyway they desire. Again, as long as the lender is in compliance with Reg Z.

Reply by AngelinaAZ on 4/13/06 5:00pm
Msg #113429

Thanks a bunch!! n/m

Reply by Genkichan on 4/13/06 11:54am
Msg #113327

Even worse yet, the header to the last paragraph "Where Does the Notary Sign?"

Uhh, that would be ummmm.....NOWHERE?!!!?

NNA needs some serious help with editing and fact checking their articles.

Reply by Charm_AL on 4/13/06 11:55am
Msg #113330

Re: NNA....Exactly!!!.... n/m

Reply by Beth/MD on 4/13/06 12:47pm
Msg #113357

Re: NNA....Exactly!!!....

Wow, we're discussing the wonders of the NNA again. I personally don't have any companies that don't view Sat. as a business day, but it seems to me you should always follow the instructions. After all, isn't that what the instructions are for?

Reply by MelissaCT on 4/13/06 1:27pm
Msg #113374

To count or not to count...

The information I've received regarding this is that a company can give more than, but not less that 3 business days RTC. So, if a particular company doesn't count Saturdays, then Saturdays are excluded from the 3-day count of business days.

Please correct me if I'm wrong...

Reply by Beth/MD on 4/13/06 1:29pm
Msg #113376

Re: I believe this is how all companies operate, Melissa

I think most just view Sat. as a business day. However, I think we should always follow the TC or lender's instructions.

Reply by Charm_AL on 4/13/06 1:31pm
Msg #113377

Re: I believe this is how all companies operate, Melissa

As Beth says, follow the instrutions. Most do count Sat as a biz day, but I have some that do not. Yes, they can give more than three days.

Reply by Marlene/USNA on 4/13/06 1:56pm
Msg #113390

Re: This error (Where Does Notary Sign?) has been fixed.

NNA tells me it should have been Where Does Borrower Sign? The web page has been corrected.

Reply by AngelinaAZ on 4/13/06 3:28pm
Msg #113414

Re: NNA.. and the AZ SOS... SCARY!

I had to call the AZ SOS a while ago regarding an ID issue that was being haggled over... they referred me to the NNA as the 'authority' on the issue.

The conversation that I had with the SOS is in post# 104432