Posted by NotaryMot/CA on 7/24/11 3:05pm
Msg #390973

Right To Cancel Issue for Split Signing

I'm doing a split signing where the notice to cancel dates remained the same for the second borrower. The Notice of right to cancel 3 day time period starts when the last co-borrower signs, is that correct? Otherwise they'd only have one day after the last borrower signs to cancel.

Reply by JustANotary on 7/24/11 3:12pm
Msg #390974

Yes, you have to change the dates for the second borrower showing that they signed today & have till Wednesday to cancel. Have them initial both dates.

Reply by Linda_H/FL on 7/24/11 3:17pm
Msg #390976

No ... you don't necessarily have to change the date

the Notice of Right to Cancel clearly states - 3 business days from

1. The date of the transaction; or
2. The date you receive your Truth-in-Lending; or
3. The date you receive this Notice;

whichever is later (or on some it states "the LATTER of the three instances). "Later" or "latter" being the operative word.

So the rescission period begins to run as of the day each person received their NORTC -

I would not change dates on NORTC's without prior approval from title.

Reply by JanetK_CA on 7/24/11 3:28pm
Msg #390983

Re: No ... you don't necessarily have to change the date

I believe Linda is basically right. (PAW would have known with absolute certainty, and I probably learned this from him... sorry, couldn't help myself. )

I would just explain to the borrower that each person has their own three-day rescission period, starting the day *after* they sign acknowledging the receipt of their two copies. So if the 1st person signs Monday, that person has Tues, Wed, Thurs. If the 2nd person signs on Tues, that person has Wed, Thurs., Fri. to rescind.

Reply by JustANotary on 7/24/11 3:20pm
Msg #390980

Wait!

I just rememebered, some lenders do not want you to change the original date of signing, just the second date (the last date to change their mind). So have them sign two rights to cancel, one with the original date of signing at the top, one with todays date at the top. The second date, the last date to change their mind should be Wednesday on both forms. They initial all dates changes.

Reply by JanetK_CA on 7/24/11 3:35pm
Msg #390985

Re: Wait!

This is another lender-specific thing. Some want you to correct the RTC to reflect the correct dates, others do not. The one date that governs when the rescission period really is, is the date the BO receives the notice. And I don't think the law even requires the BO to sign the notice, although, as we know, the vast majority of the lenders want it signed and dated - sometimes dated more than once.

Reply by Notarysigner on 7/24/11 5:37pm
Msg #391001

Agree but just to be safe just ask what they want? n/m

Reply by NotaryMot/CA on 7/24/11 3:56pm
Msg #390989

Thanks to all the info. I'm doing this today and have no access to the title company. I think I'll just leave as is and explain to the borrower.

Reply by Linda_H/FL on 7/24/11 4:21pm
Msg #390994

I think that's the best thing you can do - leave it as is

I had an RM the other day - the borrowers waived one day of the rescission period - there was a form in the package for that - however the dates were stated with the standard 3-day.

Among all the other issues involved, you have no way of knowing if there's a waiver in this particular instance either - maybe they came to a prior agreement.

Good Luck.

Reply by CopperheadVA on 7/24/11 4:10pm
Msg #390993

I had one about eight months ago. I was the second notary on a split signing. At first I thought we had a problem when I saw the RTC - one RTC for all borrowers (no duplicates!), and it was already signed by the first signer in PA. I was signing the first signer's parents several days later here in VA. I instantly thought there would be a date issue for my signers, but then I looked more closely at the pre-printed cancellation deadline date and noticed that it was correct for my borrowers. Essentially, the lender had extended the RTC period for the first signer to be included in what was given to my signers. My signers had their three days, but the first signer had something like six days or whatever it worked out to be.

One thing, I did have to make extra copies of the RTC for my signers. There was only one in the borrower copy package that the first notary was kind enough to print and provide for my signers, which he included in the o/n package with the docs signed by the first signer.