Posted by Paula Yakey on 2/26/13 1:46pm
Msg #457955

Do I need to CYA?

I was a mortgage banker/broker for 21 years and a signing agent for almost 10 and what just happened at my signing I have never encountered on either side of the table.
I just did a signing for a single guy never married and his primary residence. He made his Feb. payment and had $17.71 due at closing. No right to rescind! He did not even know that all he said was that they told him they were going to get it to fund this month.
So I call the TC and told them I needed a reason for this and the guy was SO rude I told him to forget it.

Has anyone ever had this happen. I know that on a very dire hardship case the RTC can be waived and also if it is Lender to Lender...but not just to get it to fund in this month and not without the borrower knowing.
It was a BOA loan.

Reply by Linda_H/FL on 2/26/13 1:56pm
Msg #457959

"So I call the TC and told them I needed a reason for this and the guy was SO rude I told him to forget it"

That was your first mistake - it's really not your problem. If Lender decided not to have it rescindable, that's lender's option. Now if the borrower has a problem with it, I'd have put him on the phone and let title explain it to him. But never would *I* demand an explanation from a TC about loan terms or anything in the loan package. I'm just not paid enough to make it my business.

JMO

Reply by Paula Yakey on 2/26/13 1:58pm
Msg #457960

Ok then. Thank for your opinion!

Reply by Teri_PA on 2/26/13 2:34pm
Msg #457970

Actually, there are quite a few exceptions where the RTC is exempt, although many lenders choose to include it anyway. I have seen many cases where there was no RTC when on first blush it would appear one should be evident. In your case the exception is that whereby if the amount financed is equal to or lower than the principal remaining on the loan, no RTC is required if it is the same lender. The fancy wording is below from the exceptions listing:

(2) 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 Paula Yakey on 2/26/13 2:42pm
Msg #457972

Yea I know but his amount financed was higher. That's what threw me. I am going to take Linda's advice and not lose any more time or energy on it. It is BOA's deal now. Thanks though!

Reply by MW/VA on 2/26/13 5:43pm
Msg #458019

Sometimes experience hurts you. IMO it wasn't your

place to call the TC & tell them you needed a reason for no RTC. I would have had him call the LO, like we always do. These are not our calls to make.

Reply by SheilaSJCA on 2/26/13 5:46pm
Msg #458021

it would be better to get this sort of question answered

before you meet with the signers. Not at the table.

Reply by Sha/CA on 2/26/13 7:13pm
Msg #458042

Not my problem either, but see it often with BofA,

refinancing their own loans, where there is no ROR.