Rescission & Multiple Consumers

For the right of rescission to apply to a consumer:

  1. The consumer must have an ownership interest in the dwelling being used as collateral.

AND

  1. The dwelling being used as collateral, must be the consumer’s principal dwelling.

If both conditions are met, rescission applies. If multiple consumers are entitled to the right to rescind, each one has the ability to rescind independently from the other. This means that you must ensure that each consumer gets two copies of the rescission notice and that no consumer exercises their right before advancing funds on the fourth business day.

Kevin explains more in the video.

 

Lending Resources!

Published
2025/04/17

 
Kevin Edwards

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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