This article intends to clarify dating on the Notice of Right to Cancel or RTC.
A borrower went to confession
TOM: “Forgive me father for I have rescinded.”
PADRE: “Did you rescind in the 3 day period?”
TOM: “Yes, father.”
PADRE: “Then, it is okay in the eyes of the lord. 3 hail Mary’s.”
TOM: “It was in two days, so can you reduce my sentence to 2 hail Mary’s?”
When you get a non-commercial and non-investment personal refinance, traditionally you get three days to resind or cancel your loan. Counties these three days is a skill that Notaries need, but don’t always have. In the old days, and with certain lenders, the Notary is reponsible to write in the TRANSACTION DATE in a blank in the RTC.
The transaction date is the date when a notarization is done or when a loan is signed. Technically with Acknowledged signatures, the signature can be made previous to the Notarization. It might be five minutes previously or twenty years previous to the notarization. During loan signings, the documents are normally signed at the time of the loan signing and promptly notarized.
The signature date is normally the same as the transaction date, but not necessarily and is the date the person signed the document. Once again, in an Acknowledgment, that could come before the notarization if the borrower wishes to sign ahead of time, but at a loan signing is normally on the date of the loan signing.
The notarization date is the date when a document is notarized.
The recission date or deadline or last day to rescind is three days after the date of the signing not including Sundays or Federal hollidays or other days that the Lender allows.
Please note that business days only include Monday to Friday while days to rescind include Monday to Saturday not including Federal Holidays of which there are ten.
Let’s do some practice runs.
(1.) A loan is signed New Year’s eve on Friday the 31st. What is the last day to cancel your Refinance?
Sat would be New Year’s Day a Federal holiday. Sunday would be a Sunday and not counted. So, you would have… Mon, Tues, Wednesday would be the last day.
(2.) A loan is signed on Monday in April when there are no Federal holidays. The last day to cancel is… Tues, Weds, Thursday would be the last day.
(3.) A loan is signed on Sunday in April. The last day to cancel is… Mon, Tues, Wednesday would be the last day to cancel.
(4.) A loan is signed on Thursday in April. The last day to cancel is… Fri, Sat, skip Sunday and Monday would be the last day to cancel.
(5.) A loan is signed Wednesday before Thanksgiving. The last day to cancel would be… Fri, Sat, skip sunday and then Monday would be the last day to cancel UNLESS the Lender allows Friday as an arbitrary holiday (they can be generous if they like) in which case it would be… Sat, Mon, and Tuesday would be the last day to cancel. Whether Black Friday is considered a holiday or not is up to the Lender and they are 50/50 on this one. But, if they don’t specify, then it is considered a regular business day with exceptionally long lines!
Now boys and girls, we understand the RTC or Notice of Right to Cancel. We hope you are also aware of when the ten Federal holidays come. It is not a bad idea to have a Rescission Calendar. I heard that the NNA might have them, so get one that fits in your wallet.
What’s in YOUR wallet?>