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Correct rescission form…

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  • #33590
    pcorder
    Participant

    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!

    #33617
    rcooper
    Keymaster

    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.

    #33622
    pcorder
    Participant

    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! 🙂

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