Posted on: 12th Feb, 2008 09:50 am
If a borrower does a refi of their primary residence (thus invoking TILA), but 1) they have been given all relevant disclosure pertaining to cost, apr, etc. by their lender, and 2) the lender has sold the mortgage to a 3rd party for service of the mortgage, can the borrower claim there was a discrepancy in apr from their original broker and the lender's ultimate terms, and cancel (rescind) the mortgage?
Thank you
Nick M
Thank you
Nick M
Hi Nick,
Welcome to the forum.
I think you cannot cancel the mortgage now. Is it that they have increased your mortgage payments or something else they have done to you?
I think you should consult with an attorney regarding this.
Thanks.
Larry
Welcome to the forum.
I think you cannot cancel the mortgage now. Is it that they have increased your mortgage payments or something else they have done to you?
I think you should consult with an attorney regarding this.
Thanks.
Larry
Larry
Thank you. Actually, it is not I, but someone else who is of the opinion that this is a cancelable deal. I thought about this roughly along the same lines as you. Really, the loan is not changed at all since inception (middle of 06). The rate WOULD go up later this year, but the borrower already fell behind last year, in the first half of the year. I realize you're probably not an attorney, and even if you are, cannot really give legal advice here, but do you have any specific sources you can point to for your opinion? My opinion really is based on a 'gut feel', that the lender (even though a broker may have given substantially similar, though tecnically slightly different, information) has complied with the 'TILA' rules if they've given all the final numbers to the borrower at and/or before closing once they knew the final approval terms (don't know if lender mailed it to her before close and after approval) - who then of course has between 4-6 calender days to look at it. To my knowledge there is no minimum number of days a borrower needs to have info before a loan funds. As long as she has it and it is the same (ie, rate, loan amount, apr, etc) as what the loan ended up at, she cannot rescind it (final loan, 1 year later).
Thanks
Nick
Thank you. Actually, it is not I, but someone else who is of the opinion that this is a cancelable deal. I thought about this roughly along the same lines as you. Really, the loan is not changed at all since inception (middle of 06). The rate WOULD go up later this year, but the borrower already fell behind last year, in the first half of the year. I realize you're probably not an attorney, and even if you are, cannot really give legal advice here, but do you have any specific sources you can point to for your opinion? My opinion really is based on a 'gut feel', that the lender (even though a broker may have given substantially similar, though tecnically slightly different, information) has complied with the 'TILA' rules if they've given all the final numbers to the borrower at and/or before closing once they knew the final approval terms (don't know if lender mailed it to her before close and after approval) - who then of course has between 4-6 calender days to look at it. To my knowledge there is no minimum number of days a borrower needs to have info before a loan funds. As long as she has it and it is the same (ie, rate, loan amount, apr, etc) as what the loan ended up at, she cannot rescind it (final loan, 1 year later).
Thanks
Nick
Nick, you are right. One cannot rescind a loan after 1 year. But you can certainly do it within 3 days of applying or 3 days of closing provided you are supposed to get the loan funds 3-4 days after the closing.
If the person has fallen behind, he should talk directly to the lender and see what possible work out options can help him get current on the loan. isn't the lender taking any steps since he has fallen behind on the loan?
Is there really any discrepancy in the APR? However, even if there is, I don't think he has any option other than to think about how to get current on the loan.
Regards,
Jessica
If the person has fallen behind, he should talk directly to the lender and see what possible work out options can help him get current on the loan. isn't the lender taking any steps since he has fallen behind on the loan?
Is there really any discrepancy in the APR? However, even if there is, I don't think he has any option other than to think about how to get current on the loan.
Regards,
Jessica
Nick,
As a general rule of thumb.....most if not all lenders send out a set of disclosures once the loan is recieved from the broker....so this person would have gotten an initial set of disclosures from the broker and at loan submission another set of disclosures from the lender and if there was changes in excess of .125% from initial to final chances are another set of disclosures where sent...Then of course the at closing a final set of disclosures would have been signed.....
So where do you feel there is a discrepancy in the APR?
As a general rule of thumb.....most if not all lenders send out a set of disclosures once the loan is recieved from the broker....so this person would have gotten an initial set of disclosures from the broker and at loan submission another set of disclosures from the lender and if there was changes in excess of .125% from initial to final chances are another set of disclosures where sent...Then of course the at closing a final set of disclosures would have been signed.....
So where do you feel there is a discrepancy in the APR?
My mortgage was sold, but everything has remained the same as before, I don't see any difference at all.
unless there was a truth in lending violation, the loan is not rescindable.
