On a loan applicable to the right of Rescission (ROR) is it O.K. for a bank to release the funds to the title company the day the loan closes? In reading the regulation staff commentary it states that the creditor cannot directly or through a third party disburse advances to the consumer. My question is would the title company be that third party? What if the title company has an agreement with the bank that they will not release the funds till the three business days are up--would this suffice? Our HUD1 does have the Fund Date noted which was 3 business days after close, but I'm thinking we are still in violation since we disbursed the funds to the title company the day the loan closed. Thanks.

We date our check for after the 3 days when we release funds to the attorney, when that's necessary.

The ROR rules allow you to disburse funds into escrow. Your closing agent would be your escrow agent holding those funds; your closing agreement should specify that the closing agent does not disperse funds until the applicable rescission period expires.

Is the HUD1 the closing agreement or should we have a written agreement with each title company that we use?