[pcorder]

We sell fixed rate mortgage loans to FNMA, but retain servicing (through a third party servicer). If we refinance an existing FNMA loan to add additional funds, and sell again to FNMA, would we use the H-9 rescission model form (Refinancing w/Original Creditor)? We actually changed servicers a few years back, so the old loan possibly was serviced by the old servicer, and obviously the new loan with the new servicer. Just want to ensure we are providing the correct rescission form. Thanks!

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[rcooper]

Pcorder – sorry for the delay. I would probably use the general form H-8 as it seems to be a new transaction in that is not an existing loan on your books (the loan was sold and your bank doesn’t currently hold the mortgage). I think giving the customer the right to rescind the full transaction with form h-8 is a safer approach when there is any question as to which form should be used.

If I misunderstood anything about the transactions let me know.

[pcorder]

Rcooper…so sorry, I just saw your response today! I’ve been out of the office a couple of days. Thanks for getting back to me. What you say makes perfect sense. (If there is such a thing w/regulations. lol)

Thanks again, and have a super weekend! 🙂

[Nichole]

Question: we have a Bridge loan on our books and doing a rate/term refinance. Is the H-9 form required? We have done similar transactions more than I can count, and have always used the general H-8 form, but this time we have an investor stating the H-9 form is required.
From researching information on the H-9 form, this form should be used for transactions when they are increasing the amount of credit on the previous loan that is on our books. Giving the customer the right to rescind the increase and return the funds. Form H-8, being the general form, is used as it is a new transaction, not increasing credit, and give the customer the right to rescind the new transaction.

Am I correct in the thoughts on which for should be used, and that the H-9 should not be required? THANK YOU!

[Author]

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