Question:
We do business in a state with dower rights. I just want to make sure that a spouse who is not on the title to real estate but uses the home as a primary residence does not receive the right to rescind—is this correct?
Answer:
That is correct. For purposes of the rescission rules, dower does not constitute an ownership interest.
An ownership interest does not include, for example, leaseholds or inchoate rights, such as dower.
Comment 2 to §1026.2(a)(11): https://www.consumerfinance.gov/policy-compliance/rulemaking/regulations/1026/2/#2-a-11-Interp-2
Compliance rules and regulations change quickly! For timely compliance updates, subscribe to Compliance Alliance’s email newsletters. Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email info@compliancealliance.com.
Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos:
- Live demo on Tuesday, January 21st @ 10: 00 am CT.
- Live demo on Thursday , January 23rd @ 1:00 pm CT.
