Posted by Ali/IL on 2/29/08 10:20pm
Msg #237718

why no rtc

I did a signing today for a refi on an owner occupied. This package had no rtc. And disbursement date was for today same day of signing. Why do lenders do that? Also the package had a heloc and that one had rtc.
I had one before where even though it was a refi on owner occupied it had no rtc but, that one didn't have a second.

Reply by George Rousseau on 2/29/08 11:20pm
Msg #237722

If the loan was construction to permanent financing, and the certificate of occupancy was issued less than 30 days ago no recission is required. Also, it could have been underwritten as a second home...............was there a 2nd home rider?

Reply by Ali/IL on 3/1/08 12:00am
Msg #237723

There was no 2nd home rider. And, they were refinancing just to get a lower rate.The title company couldn't explain why this mortgage company does this.

Reply by MichiganAl on 3/1/08 12:48am
Msg #237725

Same lender, refinancing their own loan, not increasing the credit limit that was already secured from prior loan. See Reg. Z, sec 226.23

http://www.fdic.gov/regulations/laws/rules/6500-1400.html

Reply by PAW on 3/1/08 7:57am
Msg #237736

There are a few reasons why no RTC, even on primary residence property. The most common one being seen today, is refinancing with the same mortgage company but with no additional funds. If the loan value is not increased, there is no requirement for the RTC.

The reason the second (HELOC) had an RTC is because the HELOC had an increase in the combined loan amount, thus the increase would fall under Reg Z requiring a rescission period.

Reply by Ali/IL on 3/2/08 4:38pm
Msg #237832

Thanks all for your comments.