Did you know that Regulation Z doesn’t technically require the Right of Rescission notice to be signed by the borrower? Actually, there are many types of disclosures that don’t require a signature but, in many cases, forms vendors add signature lines, so institutions naturally get them signed. Rescission is one of those requirements that you want to get right, due to the potential consequences, and therefore we often recommend getting the borrower’s signature in some cases.
Jerod explains more in the video.
Video Highlights:
- Regulation Z (Truth in Lending) does not technically require a signature on the Right of Rescission notice.
- Common places where forms include signature lines include: "I wish to cancel” notice receipt, and confirmation the borrower does not want to rescind.
- We recommend that notice receipt should be signed at loan consummation as evidence that it was provided. A confirmation signature is optional but should only be done after the third day has passed.
Published
2023/06/12
