I applied for a cash-out refinance of my home in California with a non-bank mortgage lender. I thought I knew the lending process, but not so sure after all. The lender had me sign docs, but an appraisal has not been performed, and underwriting is not completed, etc. But I had to sign the "Right to Cancel"? I thought I signed that after the credit process, and before actual funding, so I can have three days to rescind. But they are telling me in California it's a "Dry" state, and they can do that. Can someone please enlighten me...

Although I'm not familiar with California laws, the Right to Cancel document is signed at loan closing (stating that you have received the notification) and you have 3 business days to change your mind and rescind the transaction.

What date did they put on the right of rescission notice? The regulation states that you may exercise your right to rescind until midnight of the 3rd business day following consummation (become obligated on the note), delivery of the right of rescission notice, or dilivery of all material disclosures (truth in lending disclosure), whichever occurs last. If they have already provided the notice, then you 3 days does not start to run until after you sign the note (and security instruments) and are provided the truth in lending documents. I have never heard of providing the notice ahead of time, but am not familiary with CA laws. But it doesn't speed up the time. Please let us know how the form was completed.

Original poster here... The notary had me sign and date everything. Everything includes, the Note, Deed of Trust/Security Instruments, Riders, Final 1003, all sorts of disclosures including REG Z. This was 10 days ago.

There are some "interesting" companies doing business in that area. You really should make sure you're not dealing with a lender who's ethically challenged. Take a look at your amortization schedule, your rate and your APR. Is this a predatory loan?

I posted this same reply in the General Discussion Forum. I recommend that you e-mail the folks at the California Dept of Financial Institutions @ consumer@dfi.ca.gov.

I think a lot of us suspect that something is fishy, but we don't know enough about Califirnia law to give you a good answer. The folks at DFI will.

Right church, wrong pew, Paul. The original post said that it was a non-bank lender.

Non-bank lenders can operate under a Realtors license (if a Realtor) or under a CA Residential Mortgage Lenders license. Realtors are regulated by the Department of Real Estate and RMLs by the Department of Corporations.

DRE is at http://www.dre.ca.gov

and the Department of Corporations is at http://www.corp.ca.gov