Posted by CMS_NY on 1/10/08 4:45pm
Msg #230054

Right to Cancel in North Carolina

Does North Carolina (and/or any other States for that matter) have different Right to Cancel policies??

Or is there a standard 3-Day Right of Rescission? -> this is my contention.

I was told that NC does NOT count Saturday as a rescission day (regardless if there is a holiday or not). Is this accurate?

The reasoning I was told was because NC does not record documents on Saturdays....I don't know any county in any State that records documents on Saturday, so is that possible??

Any help/clarification is greatly appreciated.

Reply by NCLisa on 1/10/08 5:01pm
Msg #230056

Our RTC policy is the standard, if the lender uses Sat as a business day, then it is perfectly permissable, if a lender does not include Sat as a business day, then that is ok too. We have several local credit unions that do not include Sat. It is up to the lender. NC law states that the borrower only needs to sign one RTC no matter how many the lender provides, and that they must receive 2 copies.

I'm not an attorney and am not in any way giving legal advice.

Reply by Calnotary on 1/10/08 5:17pm
Msg #230059

I think RTC policy is a Federal thing, so if a lender wants to give more than the minimum 3 business days it's ok I think. JMHO.

Reply by DianeCipa on 1/10/08 6:58pm
Msg #230069

It is a federal rule and it is hypersensitive. Lenders are not permitted to give more than the 3 days, but what Lisa said is correct. They count Saturday IF the have Saturday hours.

Reply by Dave_CA on 1/10/08 7:36pm
Msg #230075

Well this is partially correct. It is a Federal law but lenders may give more than the 3 days. They just can't give less and Saturday counts regardless of the lenders or recorders business hours.

Reply by DianeCipa on 1/10/08 9:26pm
Msg #230116

Ameriquest had big trouble for having a separate disclosure telling borrowers they had more than the federal requirement.

http://www.edcombs.com/CM/TruthinLending/Washington-v-Ameriquest-Ndill.pdf

Reply by Sylvia_FL on 1/10/08 7:37pm
Msg #230077

One lender gives 7 days.

Reply by Les_CO on 1/10/08 7:46pm
Msg #230079

It's a Federal Law (Regulation Z /226.15)

Reply by Calnotary on 1/10/08 7:47pm
Msg #230081

Exactly Sylvia; Amerquest gave 7 days to Rescind. n/m

Reply by desktopfull on 1/10/08 7:55pm
Msg #230083

They have to give 3, but lender can give more if they want. n/m

Reply by Pat/IL on 1/10/08 8:52pm
Msg #230096

Re: They have to give 3, but lender can give more if they want.

Right. I have never seen anything in Reg Z that prohibits a lender from offering more than 3 days. As to the requirement that the business be open on Saturday in order to count it as a business day, it is excepted as follows:

"6) Business day means a day on which a creditor's offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission under §§ 226.15 and 226.23, and for purposes of § 226.31, the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day, the birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day. "

226.15 and 226.23 pertain to transactions securing the primary residence (but not when the loan is used to acquire the residence).

Of course, states have laws that may go beyond federal law, right? So who knows?

Not a lawyer, not related to any lawyers, blah blah blah....

Reply by DianeCipa on 1/10/08 9:27pm
Msg #230118

Ameriquest's day in court and how they are learning

the meaning of the word "hypersensitive"....

http://www.edcombs.com/CM/TruthinLending/Washington-v-Ameriquest-Ndill.pdf

Reply by DianeCipa on 1/10/08 9:32pm
Msg #230121

pardon me, that's hypertechnical

"As Defendant concedes, this Court recently addressed a very similar fact pattern
involving the Notice of Right to Rescind and the One Week Cancellation Form. See Jones v.
Ameriquest, No. 05-0432, slip op. (N.D. Ill. Jan. 31, 2006). As discussed more fully in Jones,
this Court finds that a reasonable fact finder could determine that providing both the TILA notice
and the Ameriquest notice confuses an ordinary consumer. The method of counting the days of
the rescission period differs between the two forms. TILA’s consumer protection requirements
cover only the TILA three-day rescission period. Ameriquest’s One Week Cancellation form,
however, does not inform consumers that they might lose some of the protection TILA provides
if they wait longer than three days to rescind their credit transaction. As in Jones, this Court
declines to follow Hamm v. Ameriquest Mortgage Co., No. 05 C 227, 2005 WL 2405804 (N.D.
Ill. Sept. 27, 2005), which also considered whether Ameriquest’s One Week Cancellation Form
violated TILA. The Hamm opinion provided only minimal discussion of TILA and omitted any
discussion of the “hypertechnical” TILA standard in this Circuit. Id."

Reply by DianeCipa on 1/10/08 9:43pm
Msg #230127

good rescission article

http://predatorylendinglaw.org/2007/09/14/loan-rescission--when-three-days-really-means-three-years.aspx

Reply by Burton Georgia Loan Closers.com on 1/10/08 9:47pm
Msg #230130

Re: good rescission article

Greatly appreciated. Thanks.

Reply by Pat/IL on 1/11/08 1:11am
Msg #230177

Re: Ameriquest's day in court and how they are learning

The court, as far as I could see, had a problem with the confusion that could be caused by Ameriquest's document extending the rescission period - not the extension itself. Actually, the only conflict I can find with Reg Z in the following statement is that they impose a date that the cancellation must be received by Ameriquest. This would would pretty much nullify the borrower's option to mail in the cancellation, wouldn't it? But the court's opinion does not even mention it. The court only cites the 'confusion' it could cause, even though it's stated pretty clearly, with examples:

"Ameriquest Mortgage Company believes that a loan secured by your home is one
of the most important financial decisions you can make. To give you more time to
study your loan documents, obtain independent advice and/or shop for a loan that
you believe suits you better, we provide you with one-week (which includes the
day you sign the loan documents) to cancel the loan with no cost to you. No
money will be disbursed before 10:00 a.m. on the first business day after this
period expires. Business days are Monday through Friday, excluding federal legal
holidays.
For example, if your loan closes on a Tuesday, you could cancel from that
Tuesday through midnight of the following Monday.
If you want to cancel, you must do so in writing and we must receive your request
before midnight on the day the cancellation period ends. You may cancel by
signing an dating in the request to cancel box below or by using any other written
statement that provides your loan number and states you desire to cancel your
loan. The written statement must be signed and dated by any one borrower."

I don't know, but I would guess that there are some pretty easy fixes available to any lender that wants to allow for a longer rescission period.

Again, not a lawyer (and after reading this court's opinion, I would rather be a street sweeper). With all of the dirty rotten things Ameriquest appears to have pulled on the Washingtons, so many apparent TILA violations, I just find it mind boggling that the court based its conclusion largely on a 'confusing' homemade document.

By the way, the mortgage that the Washingtons signed on February 27, 2003 was not recorder until July 15, 2003. What kind of title company was Ameriquest entrusting with its security interest?

Reply by sue_pa on 1/10/08 10:00pm
Msg #230131

I've never been able to figure out when or why 'signing agents' determined this form was their domain - above and beyond every other document in a loan package. The case posted by Diane is clear evidence we should not concern ourselves one bit about the RTC because WE DON'T UNDERSTAND ALL THE IMPLICATIONS. That form, along with every other form, belongs to the lender and the risk of what it says is theirs. I think that you people (yes Brenda, I said it) who fill them out are crazy - unless there is one of those little charts from the lender right in the package telling you which dates that specific lender wants you to use. The once or twice a year I get one of these, I keep a copy of that RTC instruction sheet stapled to my paperwork. I think that you people (yes Brenda, one more time) who use a generic rescission calendar are crazy. You could not begin to practice law any deeper than determining via public 'signing agent' message boards when a borrower may cancel their loan.

Reply by DianeCipa on 1/10/08 10:05pm
Msg #230132

I agree with Sue - absolutely. n/m