Jump to Content
ABA: The American Bankers Association
Skip Section Navigation

Do notices need to go to both the husband and wife for a rescindable refinance loan secured by a principal dwelling when both the husband and wife are borrowers?

Is a bank required to provide the Loan Estimate, Closing Disclosure, and right of rescission notice to both the husband and wife for a rescindable refinance loan secured by a principal dwelling when both the husband and wife are borrowers?

The bank may provide the Loan Estimate to either one of them. The bank must, however, provide the Closing Disclosure and right of rescission notice to both the husband and the wife.See the Comment 2 to §1026.17(d) of Regulation Z (Truth in Lending Act), which provides:

When two consumers are joint obligors with primary liability on an obligation, the disclosures may be given to either one of them. If one consumer is merely a surety or guarantor, the disclosures must be given to the principal debtor. In rescindable transactions, however, separate disclosures must be given to each consumer who has the right to rescind under §1026.23, although the disclosures required under § 1026.19(b) [variable rate loan information] need only be provided to the consumer who expresses an interest in a variable-rate loan program. When two consumers are joint obligors with primary liability on an obligation, the early disclosures required by §1026.19(a), (e), or (g), as applicable, may be provided to any one of them. In rescindable transactions, the disclosures required by §1026.19(f) must be given separately to each consumer who has the right to rescind under §1026.23. In transactions that are not rescindable, the disclosures required by §1026.19(f) may be provided to any consumer with primary liability on the obligation. . .

(August 2018)

Compliance Hotline

Have a compliance-related question? We're here to help. Members, reach us by phone or email.