Regulation Z: When Does the Rescission Period Begin?

Under Regulation Z, the three-business day right of rescission period begins when the last of the following events occurs:

1. Consummation of the transaction (i.e., loan closing);
2. Delivery of all material disclosures; and,
3. Delivery of the required rescission notice.

We often get asked, what are the material disclosures? For closed-end loans, §1026.23(a)(3)(ii) states, …the term “material disclosures” means the required disclosures of the annual percentage rate, the finance charge, the amount financed, the total of payments, the payment schedule, and the disclosures and limitations referred to in §§ 1026.32(c) and (d) [high-cost mortgages] and 1026.43(g) [prepayment penalties].

Kevin explains more in the video.

Published 2026/04/09