If the loan was closed therefore the right of rescission was not cancelled but the certificate of noncancellation was not cancelled is that a violation?
I'm not really sure I'm following you, but if the loan closed and funding did not occur until after midnight of the 3rd day, then there is no violation.
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My opinion only. Not legal advice.
There is no regulatory requirement for the borrowers to sign to confirm they are not cancelling. As long as funds were not dispursed until after midnight of the third day, you're ok.
Now getting that past an investor may be a totally different story. The ones we deal with hold to the theory that 'if there's a signature line, there must be a signature'.