The Truth in Lending Act’s right of rescission requirements always seem to generate a lot of questions. Knowing when to give it, who to give it to and how to count the three-day rescission period can all be tricky. Here are some questions we’ve received recently:
Question: Are we required to give rescission for a HELOC secured by an investment property that’s not the borrower’s primary residence?
Answer: No, the right of rescission only applies when a security interest is taken in a dwelling someone both owns and is their primary residence.
Question: A mother and daughter own a home together. The home is the mother’s primary residence and the daughter lives in another state. Mom is getting a home equity loan in her name only. Daughter does not get the right to rescind since the home isn’t her primary dwelling, but does she need to receive a copy of the Closing Disclosure?
Answer: A non-borrower is only required to receive a copy of the Closing Disclosure if the individual has the right to rescind.
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Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager.
Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelor’s Degree in Business Administration, and is a graduate of the ABA Compliance School.
Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!