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Rescission

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  • March 7, 2016 at 9:41 am EST #8870
    pcorder
    Participant

    We have a borrower refinancing a 1st and 2nd mortgage (with our institution), with no new funds being disbursed. There were 2 names on the original loan, but due to a divorce, there will now only be 1. The borrower resides in the dwelling. Would rescission apply? Thanks!

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  • March 7, 2016 at 2:05 pm EST #8878
    rcooper
    Member

    It sounds like the loan may be for the borrower to buy out the ex-spouse’s interest in the property. If so, it would be rescindable. See comment 1026.2(a)(24)-5

    March 7, 2016 at 2:15 pm EST #8879
    pcorder
    Participant

    That was my thought…just needed someone to agree with me. Thanks Robin!

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