Posted by CaliNotary on 5/19/10 2:42pm
Msg #337185

No RTC?

Over the past few months, I have noticed quite a few B of A streamline loans that don't include a RTC, but are on the person's primary residence. And when I say quite a few, I mean like 50% of the ones that I've been getting.

Does anyone know how they're getting away with this? Did some law change that I don't know about? Obviously all of these people cannot be in those extremely rare situations that would allow the bank to waive the RTC, and I sure don't get the impression from them that they're in any sort of financial distress.

Reply by Linda_H/FL on 5/19/10 2:44pm
Msg #337188

Can't the rescission period be waived by the lender if the refi is with the same lender they already have?

Reply by LMS on 5/19/10 2:53pm
Msg #337194

I also questioned this and was told by a title company, if it's a streamline refi with the same lender and no cash out, then it's the lenders option on giving a 3 day rtc. So far, BofA is the only lender "I" know of that exercises this option. By the way, not stating this as a fact, just what I was told.

Reply by CaliNotary on 5/19/10 3:04pm
Msg #337198

That's weird that it's the lender's option and not the borrower's. Seems like that leaves room for people to be ripped off, which I thought was the whole purpose of the RTC?

Reply by MikeC/NY on 5/19/10 3:13pm
Msg #337201

Accordiung to Reg Z

§ 226.23 (f) (2) , these transactions are exempt from the RTC requirement:

"A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling. The right of rescission shall apply, however, to the extent the new amount financed exceeds the unpaid principal balance, any earned unpaid finance charge on the existing debt, and amounts attributed solely to the costs of the refinancing or consolidation. "

Reply by Notarysigner on 5/19/10 3:35pm
Msg #337207

Wow...If it true, nice post by LMS and mike....I didn't know this as I've never had this type experience.

Reply by Sylvia_FL on 5/19/10 3:51pm
Msg #337213

A streamline loan - where borrower has same lender and no cash out, does not have an RTC. Usually the refinance is for a lower interest rate.

Reply by Notarysigner on 5/19/10 5:57pm
Msg #337225

This is a good example of why a seasoned notary requesting their fee for services is because they can eliminate "problems"! TC Have got to care but it looks like giving it to the SS guarantees the TC will get the job done. Thus low-ball SS. Previous post show caliNotary correct. Who does care?

Reply by C. Rivera Chicago Notary Services on 5/21/10 8:17pm
Msg #337581

are they all refi's? n/m

Reply by John Schenk on 11/10/10 9:32pm
Msg #360692

Had a BOA refi with no RTC today. Nice catch on the statute. Thanks!

JJ