Questions and Answers
If a residential mortgage loan is brokered by Company A, and closed in the name of Company B, can the customer create a valid rescission during his/her 3 day period if they send the notice of rescission to Company A? or is it only valid if it is sent to company B?
If the creditor provides an address to which the consumer's notice of rescission is to be sent, then the consumer's notice is effective only if it is sent to that address. If the creditor does not provide such an address, then the consumer can send the notice either to the creditor or to the person to whom the consumer is directed to send payments. Regulation Z also acknowledges that state law may provide that the consumer's notice can be delivered to other third parties and be effective.
See the Commentary, 12 CFR 226.23(a)(2) – 1.
(Posted: 08/31/2007)
