Bec, by allowing them to rescind, the bank must return/refund every amount that they paid into the transaction - all fees, charges, etc. it would be like it never occurred. If there was an appraisal, attorney, credit bureau fee, flood, etc. all MUST be given back.
Personally, unless it was a huge client, they made the mistake, and I would make them pay the loan off, but not rescind.
Integrity. With it, nothing else matters. Without it, nothing else matters.