It’s coming up on a year since the Minnesota law went into effect requiring a 7-day cooling off period in addition to the Federal 3-day recission period on all refinances. No matter how much I explain that the law was put into place by legislators with the intention of protecting them, since then every borrower has complained about waiting an extra 7 days. Borrowers have stated:
- “I’m being treated like a child, not letting me decide that I’m ready to proceed.”
- “Why do I have to wait extra time, I’ve already waited long enough.”
- “How fast can we close? I’ve already made up my mind.”
- “I took a year to decide, I don’t need more time.”
- “This takes away my dignity.”
Or variations of the above but all with the same message.
Borrowers have the right to cancel their loan at any time during the processing which usually takes 30 to 45 days. They are in control of whether they want to proceed or not during the entire time. And after closing they have the Federal 3-day recission period during which time they can also choose to cancel their loan. The additional 7 days is an irritation rather than a protection!
Consequently the Minnesota law makers did nothing to protect seniors when they passed this unnecessary law in the 2010 Minnesota Legislation. If they really want to protect seniors they should look at other things that would be true protections, not putting in unnecessary regulations.
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