Posted by Kimberly_OH on 7/22/06 9:18pm
Msg #134774

right to cancel

I did a WAMU closing tonight where mom and son were in title but only mom was on the loan. I noticed that there wasn't a RTC for the son. I called WAMU and they said that since son wasn't on the loan that he doesn't have to sign a RTC!!!! Am I missing something here???

Reply by PL on 7/22/06 9:27pm
Msg #134778

No, you followed the companies instructions to a tee, there's no problems that I see.

Reply by MistarellaFL on 7/22/06 9:39pm
Msg #134781

There could be a problem, but it's not yours.
Remember, investment properties and purchases do not have an RTC.
And, since you noticed it was lacking, and you brought it to WAMU's attn,
you went above and beyond.
Personally, if I knew it wasn't an investment property or purchase,
I'd have noted the name of the hiring person who gave me that advice.
That way if THEIR problem was ever insuinuated it was MY problem, I
could direct the "insinuator" (Hmmmm, is that a word?) to the "advice-giver".
JMO

Reply by Sincere Notary MANTRA Solutions on 7/22/06 10:28pm
Msg #134788

I did a similar signing - where a person was buying property for his son in another state. Since father was borrowing the money - only he had to sign the RTC. Son had to sign only 2 or 3 papers although his name was on the title. I do not see anything wrong in the docs - but you showed your due diligence by calling the borrower and confirming

Reply by Bruce_CA on 7/22/06 10:00pm
Msg #134784

The logic here is that the mom is the only one borrowing the money. Not the son. As a Realtor, this is the way I was tought. I have seen other ways of handling this, but I beleive this is the normal way to handle this. Again, may vary state to state, and it may vary on how vesting was before / after this new loan.

Food for thought- One loan officer I have worked with in the past said that she does a RTC for the non borrower only if the encumberance is greater than what it was before (which it USUALLY is)

And all of this goes out the window if this is a purchase money loan, a second home, an investment property or more that 4 units....

HTH
Bruce

Reply by MistarellaFL on 7/22/06 10:04pm
Msg #134785

And state law.

In FL, NOBs are required to sign the NORTC,
if they have a vested interest in the property.
I should've been clearer. I don't know OH law
regarding this subject.

Reply by PAW on 7/22/06 10:14pm
Msg #134786

It's a Federal Law

Reg Z specifically states in Title 12, Sec. 226.15 Right of rescission:

"(a) Consumer's right to rescind. (1)(i) Except as provided in
paragraph (a)(1)(ii) of this section, in a credit plan in which a
security interest is or will be retained or acquired in a consumer's
principal dwelling, ***each consumer whose ownership interest is or will be
subject to the security interest shall have the right to rescind***"

(*** added to highlight the appropriate passage)

Anyone with ownership interest granted by being on title or statute or Constitutional amendment (FL Homestead Act is guaranteed by the FL Constitution), has the right to rescind.

Reply by MistarellaFL on 7/22/06 10:22pm
Msg #134787

Re: It's a Federal Law-that's what I thought.

Off to bed, it's been a long week, and the hundreds of EOM refi's
are right around the bend
Thanks for clarifying that.

Reply by Ernest__CT on 7/23/06 7:48am
Msg #134824

You did the right thing. Be sure to cover yourself ...

... by noting the date and time of the phone call, the person's first AND LAST name, and sending a written note with the signed docs. An email message would be A Good Idea, if possible, before dropping the docs.

Remember, we're not attorneys! We can't give legal advice. We can say "Gee, all the other closings I've done ...."

Reply by Bob_Chicago on 7/23/06 9:35am
Msg #134830

Rule of thumb that I use. If there is a RTC.......

required, as determined by federal law ( not your call as as NSA,
but generally a re-fi or junior loan on principal residence)
then all who are reqd to sign the MTG/DOT ( again , not your
call) as determined by applicable state law, need to receive two
copies of RTC ( and copy of TIL if there is one. ) Signature or initial
on RTC acts as a receipt.
If one has an interest in the property as determined by
state law, then that party needs to consent to a lien being placed
on the property. The consent is generally shown by them signing
the MTG/DOT , but they can also sign a separate doc to be recorded with
the mtg/dot
It is ultimately the lender's /TC risk as to if a valid lien has been created
as to the property.
You as NSA are ok so long as you CYA by having all sign whose names
appear, and if you ? the need for one not reqd to sign, documentint who
you spoke to .
A L/O at a broker is NOT an appropriate party to consent to anything of
this nature.

Reply by CaliNotary on 7/23/06 11:46am
Msg #134842

"The logic here is that the mom is the only one borrowing the money. Not the son"

The logic is that anybody who is on the title to the property has the right to determine whether a new loan will be placed against the property. Why shouldn't the son have the right to change his mind about the loan as much as the mom?

Reply by Lynn Lowry on 7/23/06 4:58pm
Msg #134883

I have had a problem a couple of times where there was no RTC for the NB spouse on a primary residence loan, and I couldn't reach anyone at the title company as it was after hours. I took the three copies with the borrowing spouse's name from the borrower's loan package, crossed out his name, printed the NB spouse's name, and had her sign them.

I called the TC the next day before I sent the package to verify that was what I should have done. I noted the name of the person that directed me to do so on a sticky note attached to the form and it in my journal, and thus avoided the UPL.