In certain transactions secured by a borrower’s primary residence, a borrower is entitled to the right of rescission. In short, they get three business days to sit back, relax and think about whether they really want to go through with the loan. To be honest, a consumer rescinding their loan is not a very common occurrence and in all our combined years of compliance experience we’ve only seen it happen a couple of times. That said, when a consumer does rescind, it’s a big deal. Essentially, it means the loan is null and void. While that may be easy enough to accomplish, you don’t want to overlook the fact that you must also make the borrower whole…like it never happened. This means you must refund any fees and charges paid by the borrower. And, to top it all off, there’s a clock ticking to get it all done.
Kevin explains more in the video.
Published
2024/06/06