In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership is or will be subject to the security interest has the right to rescind the transaction. Lenders are required to deliver two copies of the notice of the right to rescind and one copy of the disclosure statement to each consumer entitled to rescind. The notice must be on a separate document that identifies the rescission period on the transaction and must clearly and conspicuously:
" disclose the retention or acquisition of a security interest in the consumer's principal dwelling;
" the consumer's right to rescind the transaction; and
" how the consumer may exercise the right to rescind with a form for that purpose.
Wayne, Michigan's right to rescind when a security interest in a consumer's principal dwelling is involved is governed by the federal Truth in Lending Act (TILL) and it's implementing regulation, Regulation Z. This right provides homeowners with the opportunity to cancel certain types of mortgage transactions within a specified timeframe. Under TILL, consumers have a three-day right to rescind a mortgage transaction involving their principal dwelling. This right applies when the mortgage is used to finance the purchase or initial construction of the property, or when it is a refinancing or consolidation of existing mortgage debt. The right also extends to home equity loans or lines of credit, provided they are secured by the consumer's principal dwelling. To exercise the right to rescind, the consumer must notify the lender in writing within three business days from the date of the transaction. This can be done by either hand-delivering the notice, mailing it, or sending it electronically if the lender allows for electronic communications. The notice should clearly state the intention to rescind the loan and be signed by all consumers obligated on the loan. In Wayne, Michigan, as in other parts of the United States, there are no specific types of rescission rights that differ from the federal TILL requirements. The right to rescind applies uniformly across the country, ensuring that consumers have the same protections when it comes to mortgage transactions. It's important to note that the right to rescind is subject to certain exceptions, including loans used to purchase or construct a second home or investment property, loans not secured by the consumer's principal dwelling, and loans made by creditors who are not required to comply with TILL regulations. In summary, Wayne, Michigan residents have the right to rescind certain types of mortgage transactions involving their principal dwellings within three business days of the transaction. This is right, established under federal law, aims to protect consumers from potentially unfavorable loan terms or predatory lending practices. By exercising this right, homeowners have the opportunity to reconsider their mortgage decisions and make more informed choices.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.