Right to Cancel: 2 signed copies

You have a very good idea and a valid point.  I am going to make sure they are always signed.

great idea - so many people have no idea what the law is in a transaction!

I think you are getting into a area where we the loan-signers don't need to go.  If the lender wants the borrower(s) to sign their copies and, this has ppened 1or 2 times in the 6 years I have done loan-signings, than I will do it.

Less than 1% of homeowners actually cancel a refi and I think they can figure it out by themselves.

Just my opinion. 

Where did you get this information?

It is the responsibility of the Signing Agent to fill out the NRTC for each person listed on the security instruments. In fact each person on the loan must receive 2 copies of the filled out, dated and signed Notice of Right to Cancel documents. Even though you may have provided the lender with completed and signed copies, occasions may arise in which borrowers request to rescind years later because they claim the NRTC given to them was incomplete or not filled in with all the signatures and dates.

Joan,

I have received those same notices and requests from multiple title, mortgage and signing companies.  I have questioned why this is required and no one was able to provide a legitimate answer.  It appears this began when a high volume of consumers started having problems with their adjustable rate loans and complaints of fraud escalated.

I haven't seen that request in recent loan packages that I have received. 

We are notary/loan-signers and I don't think we should get involved with what a lender requires as far as how many RTC documents are signed.

I have signed several loans over the years that had 8 or more RTC in a loan package (and the same amount in the borrower(s) package because I have printed their copies)  I just get them all signed and send them back.

I have worked for a few companies that require signed copies of the RTC for  the borrower(s) copies and I get them signed as required.

I don't think it is our responsibility to get 2 RTC signed for  the borrower(s) copies unless specifically requested by the lender.

What does everyone else think?

Hi Joan,

I agree with you and work within the parameters of what is required by the HUD/RESPA standards.  I make necessary date modifications to the rtcs and inform the borrowers of the request the company.  However, I do not enforce them to sign their copies as well, that is strictly optional on their part. 

My experience in attending closings with attorneys has been quite interesting.  I have been informed that having people signed more than what is not required by law is breaking the law.  For example, when it is requested that the borrower signs multiple copies of their mortgage deed, it is deemed as unwarranted and the borrower can refuse to sign them.  By law, (per advise of attorneys) the borrower is only required to sign one original mortgage deed. 

So in essence, if Company X wants any additional copies of a particular document signed I always attempt to have them or the loan officer call the borrower prior to or during the closing to explain there reasonings for the request. Usually when I request that of them, I am often told it is not warranted and don't worry about getting those additional docs signed.   

There is no reason to have a borrower sign their copies of the RTC unless the company who hires us  requires it, then I get them signed.

There isn't a Federal law that says the borrowers copies must be signed. 

 My statement on getting 8 copies signed is just complying with what a particular lender wanted me to do in a particular loan package.

You were following the instructions from one  particular company and applied it to all your future signings.

That is your prerogative and getting the borrower(s) copies signed is certainly not going to get a Notary/Loan-Signer any problems, but the vast majority of companies (99%) do not require the signing of the borrower(s) copies.