It is understood that, if a borrower has a right to cancel, they are to receive two copies of the right of rescission. This is a federal requirement.
Should the borrowers sign their 2 copies of the right to cancel? This was a question that was raised on one of the notary message boards recently.
Why should they sign it? The copies are going to be kept by them. They might not even cancel. So it's a waste of time to have them sign their copies, isn't it?
It might be a waste of time. But that's not a call that I make.
I always have the borrowers sign their 2 copies of the right to cancel. Occasionally a borrower will ask, why they are receiving 2 copies. I explain that it's a federal requirement, for one thing. Also, if they do use one of their copies, they will still have one in their possession as a record. It is signed and dated for the day on which they received it.
I recently did a closing in which it was partially explained why the borrowers must sign their 2 copies:
According to this, it is to "release and indemnify" the lender.
So I always have the borrowers sign their 2 copies of the right to cancel. No one may ever find out if the copies were signed or not. And the borrowers may not cancel the loan. But it's done nevertheless -- not only to "release and indemnify" the lender, but also to fulfill my responsibilities as the notary signing agent.
For more information about the Right of Rescission, see: