Truth in Lending (Regulation Z) provides borrowers a “cooling off period” for certain types of loans or lines that are secured by their primary residence. While there are several factors to consider when determining whether rescission applies and when the rescission period starts, the rescission period itself gives borrowers three full business days to think about whether they really want to go through with the loan. A business day for the purposes of rescission are all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a). So, for example, if you close the loan and deliver the rescission notice and other material disclosures on Monday, you have to wait Tuesday, Wednesday and Thursday, and can disburse the loan proceeds on Friday.
Kevin explains more in the video.
Published
2025/03/21