융자지식 245-Right of Rescission

by usezloan | Nov 15, 2021 | Financial study

융자지식 245-Right of Rescission

2.24 Right of Rescission
TILA allows borrowers to have the right to cancel certain credit transactions. This right is the right of
rescission. Rescind means to take back or withdraw an offer or contract. The right of rescission is
required for refinance transactions on a borrower’s principal residence. When the borrower
refinances, the original loan obligation is paid off with a new loan.
If a borrower rescinds, the borrower is entitled to a full refund of any funds given to anyone
connected with the transaction, including appraisal fees and credit report fees, even if the originating
company has incurred an expense relating to these charges.
Rescission applies to any credit transaction involving the establishment of a security interest (for
example, a mortgage or deed of trust) in a principal residence, such as:
• Home equity loans
• Home improvement loans
• Refinances
• Home equity lines of credit
This right of rescission does not apply to the following:
• Purchase loans (which protect sellers who may have entered into another contract or
purchased a home contingent on the buyers purchasing their present home)
• Construction loans (which protect builders who may have performed services based on the
buyer’s commitment)
• Commercial loans
• Loans on vacation or second homes
• Transactions in which a state agency is a creditor
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Some specific items to consider when it comes to the Right of Recession include:
• When more than one consumer has the right to rescind, the exercise of the right by one
consumer is effective for all consumers.
• If a consumer chooses to exercise the right to rescind, the mortgage is void, and the creditor
must return any money collected related to the loan within 20 calendar days. The consumer
has no liability for the loan, including finance charges.
• The day of signing is NOT included in the three-day calculation. Therefore, if recession
happens on a Monday, the three-day rescission period lasts through Thursday at 11:59pm
(midnight). The first opportunity to fund the loan would be Friday.
• Under TILA, when calculating the right of rescission, the definition of a business day includes
any day except legal federal holidays and Sunday. Thus, Saturday can be included in the day
count, but Sunday and legal federal holidays cannot.
Notice of Right to Rescind – Creditors must inform consumers of their right to rescind by providing
two (2) copies of a Notice of Right to Rescind document to each consumer entitled to rescind (if not
properly notified).
Extended Right of Rescission – Consumers may have the right to an extended rescission period of up
to three (3) years under these circumstances:
• The creditor fails to properly notify (i.e. provide two copies of the notice) consumers of the
right to rescind.
• The creditor does not provide the consumer with the required material disclosures (or the
required corrected redisclosures).

융자지식 244-APR Accuracy and Redisclosure

by usezloan | Nov 15, 2021 | Financial study

융자지식 244-APR Accuracy and Redisclosure

APR Accuracy and Redisclosure
According to Regulation Z, the annual percentage rate is generally considered accurate if it does not
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vary above or below the APR initially disclosed by more than:
• 1/8% (.125) for a regular transaction (30-year fixed/Traditional Mortgage)
• 1/4% (.25) for an irregular transaction (Not a 30-year fixed/Non-traditional mortgage)
An irregular transaction is defined as one that includes one or more of the following features:
• Multiple advances
• Irregular payment periods
• Irregular payment amounts (other than an irregular first period or irregular first and final
payment)
If a change renders the APR inaccurate prior to loan consummation, TILA requires that the borrower
be given a corrected disclosure of all terms.
• The consumer must receive the corrected Closing Disclosure no later than three (3) days prior
to loan consummation or the corrected Loan Estimate no later than four (4) business days
prior to loan consummation.
• If the corrected disclosures are mailed or delivered by some method other than in person, the
consumer is considered to have received them three (3) business days after they were mailed.
A borrower may be able to waive the waiting periods if there is a bona fide personal financial
emergency (lender determines if it’s a valid emergency). Also, remember that consumers are not
required to continue with the loan during these waiting periods simply because the creditor provided
these disclosures.
2.23 The Mortgage Disclosure Improvement Act (MDIA)
The Mortgage Disclosure Improvement Act (MDIA) states that:
▪ Initial disclosures are required within three (3) business days of receipt of completed
application.
▪ Earliest consummation is on the 7th business day after disclosures delivered/mailed.
▪ If redisclosure is required – consumer must receive corrected disclosure at least 3 business
days before loan can be consummated.
Example 1: The creditor takes an application for a fixed rate loan on Tuesday, June 1 and mails the
Loan Estimate the next day, Wednesday, June 2. The earliest the loan can close is the following
Thursday, June 10, the seventh business day after mailing the initial disclosure (assuming no legal
federal holidays occur during the waiting period).

융자지식 243- Vs. 2.20 연이율(APR) VS 금융 수수료

by usezloan | Nov 9, 2021 | Financial study

융자지식 243- Vs. 2.20 연이율(APR) VS 금융 수수료

2.20 연이율(APR)
APR은 차용인에게 총 융자 금액에 대한 총 융자 비용의 관계를 백분율로 나타낸 융자 융자 총 비용을 알려줍니다. 주택담보대출의 경우 연이율을 공개하는 것은 매우 중요합니다. APR은 대출과 관련된 특정 금융 비용을 반영하며,
대출 기간 동안 분산됩니다. 따라서 APR은 일반적으로 어음 이자율보다 높습니다.
APR은 단순히 어음에 나타나는 이자율이 아닙니다! APR은 차용인에게 총 융자 금액에 대한 총 융자 비용의 관계를 백분율로 나타낸 융자 융자 총 비용을 알려줍니다.

2.21 금융 수수료
금융 수수료는 달러 금액으로 소비자 신용 비용입니다. 여기에는 소비자가 직간접적으로 지불하고 신용 연장의 조건으로 채권자가 직간접적으로 부과하는 모든 요금이 포함됩니다.
APR 계산을 위해 금융 수수료로 간주되는 수수료는 아래에서 확인하십시오.
• 이자, 시간, 가격 차이 및 추가 요금의 추가 또는 할인 시스템에 따라 지불할 금액
• 서비스, 거래, 활동 및 휴대 요금(예금 또는 기타 거래 계좌에 부과된 요금이 신용 기능이 없는 유사한 계정의 요금을 초과하는 범위까지 포함)
• 포인트, 대출 수수료, 인수 수수료, 찾기 수수료 및 이와 유사한 수수료

Interest, time, price differential and any amount payable under an add-on or discount system
of additional charges
• Service, transaction, activity and carrying charges, including any charge imposed on a checking
or other transaction account to the extent that the charge exceeds the charge for a similar
account without a credit feature
• Points, loan fees, assumption fees, finder’s fees and similar charges

APR 계산에 포함된 항목을 기억하는 또 다른 방법: 주택 구매자가 주택 가격을 현금으로 지불하는 경우 주택 구매자는 이러한 수수료를 지불할 필요가 없습니다.
금융 요금에서 제외된 요금(제3자가 청구하는 요금):
• 판매자 포인트
• 신용 연장을 위한 담보로 사용되는 정기예금에 대해 법률에서 요구하는 이자 감소로 인해 몰수된 이자
• 소유권 심사, 소유권 요약, 소유권 보험, 재산 조사 및 이와 유사한 목적을 위한 수수료를 포함하여 진실되고 합리적인 금액인 경우 부동산 담보 거래 또는 주거 모기지 거래 수수료
• 증서, 모기지, 환수 또는 정산 서류와 같은 대출 관련 서류 준비 수수료
• 공증인 및 신용 보고서 수수료
• 부동산 감정 수수료 또는 부동산의 가치 또는 상태를 평가하기 위한 검사 수수료
서비스가 폐쇄 전에 수행되는 경우(해충 침입 또는 홍수 위험 결정과 관련된 수수료 포함)
• 금액이 금융 비용에 포함되지 않는 경우 에스크로 또는 수탁자 계정에 지불해야 하는 금액

• Seller’s points
• Interest forfeited as a result of an interest reduction required by law on a time deposit used as
security for an extension of credit
• Fees in a transaction secured by real property or in a residential mortgage transaction, if bona
fide and a reasonable amount, including fees for title examination, abstract of title, title
insurance, property survey and similar purposes
• Fees for preparing loan-related documents, such as deeds, mortgages and reconveyance or
settlement documents
• Notary and credit report fees
• Property appraisal fees or fees for inspections to assess the value or condition of the property
if the service is performed prior to closing, including fees related to pest infestation or flood
hazard determinations
• Amounts required to be paid into escrow or trustee accounts if the amounts would not
otherwise be included in the finance charge