Is there anything in state law that prevents a lender from starting to accrue interest the day the loan is signed even though funds are not disbursed until 3 days later after the recission period? I believe it is an unethical practice but I am trying to determine if its prohibited in any way. The consumer ends up being doubled charged when they are refinancing a mortgage from another lender. On in house loans the old mortgage is paid off with an effective date that is the same as the new loan date so no double charging exists in those instances.

I believe it is an unethical practice

And so will the regulators and they will most likely cite you under the broad UDAAP provisions and make you do a look back and refund the interest.

So what do you realy need a law for? These are the scenarios that have brought about enforcement of UDAAP by the regulators to begin with.