Posted by docs1954CA on 1/26/08 3:21pm
Msg #232556

No right to cancel??

I just received an overnight package for a closing today. CW re-fi on a primary residence. In checking the package, I noticed there was no RTC's supplied and only 1 set of docs sent.I called the SS, closed of course, so I called the LO and left him a VM.He returned my call and stated that these borrowers were friends of his and they would be fine without a set of the docs left for them....HHHMMM...What about the RTC? He stated "since this is a CW loan paying off a CW loan, they waive that requirement" The borrowers waived that? No, CW does...I am not comfortable with this...CW can waive a federal requirement? Some friend....What do you guys think?

Reply by Sylvia_FL on 1/26/08 3:42pm
Msg #232557

If the borrowers are just refinancing their loan with CW and are not borrowing additional funds then it is an exception to the RTC rule.

Reply by docs1954CA on 1/26/08 3:53pm
Msg #232560

Thanks Sylvia...

This is the first time this has happened to me.I didn't realize there were any exceptions to that law.I get O/N docs all the time that don't have enough, but never zero.....Thanks again.

Reply by Sylvia_FL on 1/26/08 4:12pm
Msg #232562

Re: Thanks Sylvia...

You are welcome.
Check out the link:

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt037.shtm

Reply by LindaD/NJ on 1/26/08 7:24pm
Msg #232570

Hi Sylvia and all

I have no 1003, Indy Mac 1st and 2nd? Can you explain please also? Thank you!

Reply by PAW on 1/26/08 8:49pm
Msg #232582

No 1003 - no problem

Many times a loan package will not contain a loan application. There may be many reasons for this, but usually it is because the borrower has already completed and signed one, so there is no need for it to be included in the final package. Getting a completed and signed loan app is the responsibility of the lender. (And the broker if it is a brokered loan.)

Reply by LindaD/NJ on 1/27/08 9:13am
Msg #232631

Re: No 1003 - no problem

Thanks PAW! Have a good day!

Reply by Pat/IL on 1/26/08 3:51pm
Msg #232558

The lender cannot waive a federal requirement. However, maybe the right to cancel does not apply. If you are curious, take a look at the Truth In Lending Act (TILA) Reg. Z and note the exceptions to the rule.

In any case, I would think this is CW's issue, not yours. It never hurts to ask if you can reach them. That is simply being proactive. This is not something I would ever ask a broker about. As to the borrower's copies, I would make the copies and give them to the borrowers and charge the hiring party for the expense and effort.

Reply by docs1954CA on 1/26/08 3:58pm
Msg #232561

I will make copies for them.I can't even think about not doing that.

Reply by OR on 1/27/08 12:43am
Msg #232608

Was this and investment property. If it was then there may not be an RTC. I have had a few that way. Good luck.

Reply by DianeCipa on 1/27/08 6:32am
Msg #232621

same lender - no new money

RTC rules are different when it's the same lender and there is no new money. When you are not sure about documents in a package, discuss this with the lender - preferably in writing - fax or e-mail - and let them decide. It's their compliance liability and you should just document your discussion. Let them make the decision.