Do you know the 5 refi situations where you don't need the right-to-rescind docs?

Written By: Karen Deis

The 3-day Right of Rescission Notice is probably the most misunderstood of all the rules when it comes to refinance transactions. Your clients wonder why they have to pay 4 extra days of interest when their current mortgage is being paid off? Do Saturdays count? (Yes, they do!)

Other situations that LOs need to know:

• All fees must be refunded if the clients cancel – even if you have it in writing that it’s NOT refundable! This includes credit report and appraisal fees, even if paid directly to the appraiser.
• Refis where title is “other than” a “natural person” are exempt—however, if the loan is in “a trust”, the documents are signed “personally” so it DOES apply!
• If you have two or more people on the refi transaction, and one of them cancels, the refi is considered “cancelled”
• If the client sends the Right to Rescind in the mail and it’s marked on the 3rd day, the loan is considered CANCELLED—even if you receive it 30 days later!
• There are 5 circumstances where you DO NOT need a Right to Rescind

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