Posted by Joshua Basil on 5/11/06 12:01pm
Msg #119120

RTC


I have a loan that was sent to me in which I was informed that the Borrower has waived there 3day RTC and there will not be a copy of one included with the docs. Has anyone heard of this before and/or does this sound legit?


The borrowers are signing on a property located in IL.

Reply by DMARTZ_IN on 5/11/06 12:04pm
Msg #119122

A borrower can waive their rights to the RTC

Reply by lulu on 5/11/06 12:07pm
Msg #119126

If a borrower could wave their rtc there would be a lot less in loans cuz people would want their money asap.

Reply by lulu on 5/11/06 12:06pm
Msg #119124

I don't think there is any circumstance by which this can be waived. This is a Federally Mandated item. Unless it is actually a situation that it is not required such as in an investment property but then I wouldn't see why they would say the customer waived there right but rather it is required on that type of loan. Who told you it is waived? If the lender told you then I would call the title company.


This is not to be construed as legal advice. I am not an attorney.

Reply by Sylvia_FL on 5/11/06 12:07pm
Msg #119125

A borrower can waive their 3 day RTC - but it is difficult if you read the rules on RTC's.

However, if the property is not their primary residence there would not be an RTC on it.

Reply by DMARTZ_IN on 5/11/06 12:13pm
Msg #119130

Re: RTC (Sylvia)

Thanks Sylvia, I hit the send button before i finished with my answer

Reply by Joshua Basil on 5/11/06 12:14pm
Msg #119132

I understand that on a 2nd home or investment property there is no RTC, however in those instances the lender just does not send a RTC with the package, in this case they made it a point to include a note stating that the borrowers where waiving their RTC, and that per their attorney it was okay.....I know I am not a never-ending source of knowledge, I just had not heard of this before in the three years I have worked with this lender.

Reply by Joshua Basil on 5/11/06 12:15pm
Msg #119133

p.s.


Thank you everyone for your input it was very informative.....



(+:

Reply by lulu on 5/11/06 12:16pm
Msg #119134

I am trying to find the answer on the hud.gov site
Check it out.

Reply by Sylvia_FL on 5/11/06 12:18pm
Msg #119135

Joshua
Main thing is to remember we are notaries/signing agent, we are not responsible for the contents of a package, and if we are told that there is no RTC and an attorney has said it was OK, we are not attornies, so we cannot dispute it. (UPL)

Reply by lulu on 5/11/06 12:21pm
Msg #119137

But could be fraud on the part of the lender

Reply by MichiganAl on 5/11/06 12:22pm
Msg #119138

No, it can't be waived. Well, sort of.

Without looking it up, my understanding is that it can only be waived if the three day wait causes an undue financial hardship (ex: home will be forclosed on before the 3 days). It's extremely rare. In 3500 signings, I've never seen it done. Again, this is off the top of my very flat head.

Reply by lulu on 5/11/06 12:38pm
Msg #119142

Re: No, it can't be waived. Well, sort of.

http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=b7b3599376591a466ebe525bbcb70ce3&rgn=div8&view=text&node=12:3.0.1.1.7.2.8.13&idno=12

this is the law

Reply by lulu on 5/11/06 12:42pm
Msg #119145

Re: No, it can't be waived. Well, sort of.

(4) The procedures outlined in paragraphs (d)(2) and (3) of this section may be modified by court order.

(e) Consumer's waiver of right to rescind. (1) The consumer may modify or waive the right to rescind if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer shall give the creditor a dated written statement that describes the emergency, specifically modifies or waives the right to rescind, and bears the signature of all the consumers entitled to rescind. Printed forms for this purpose are prohibited, except as provided in paragraph (e)(2) of this section.

(2) The need of the consumer to obtain funds immediately shall be regarded as a bona fide personal financial emergency provided that the dwelling securing the extension of credit is located in an area declared during June through September 1993, pursuant to 42 U.S.C. 5170, to be a major disaster area because of severe storms and flooding in the Midwest. 36a In this instance, creditors may use printed forms for the consumer to waive the right to rescind. This exemption to paragraph (e)(1) of this section shall expire one year from the date an area was declared a major disaster.

Reply by Joshua Basil on 5/11/06 12:56pm
Msg #119148

Re: No, it can't be waived. Well, sort of.

Thanks this was the most informative.......