i'm not sure what category this would be under, but i think it would a fair lending topic!

my understanding is the maturity date runs from the date of the note, and not the day it comes out of rescission. i've noticed amortization of the loan when basing the maturity date on the day the loan comes out of rescission, is that it adds 3 more days and an increase of interest amount paid. for example 360 month loan actual 360 months and 3 days.

it's like collecting interest at the end of the loan for the rescission period. i was asked if we used this method are we in violation somewhere?? this is HELOCS AND 2nd Mortgages. can someone give me some insight. i would like to keep using the Note date, or is it anyway we want to base the maturity date on.

The date of your loan is the origination date, not the disbursement date. Which date you choose to charge interest from is an internal decision unless your State dictates one way or the other.

There is nothing wrong with collecting interest from the note date simply because the FI has had to 'reserve' those funds as of that date and cann't otherwise invest them.

However, your maturity dates above should start with the note date, always...so, you either have a 360 month or a 360 month and 3 days loan.

that's what i was trying to get across. the disbursement date is just that, and has nothing to do with the maturity date. i didn't know where to look to support what i believed what's correct. Thanks Joker, i usually go to Bankers 1st then proceed.

This is all a contractual issue. Whether you set your maturity date at 360 month or 360 months + three days is contractual and not regulatory. It is based on your loan contract and not regulation. The regulatory issues would be in disclosing the proper amount of finance charges based on your loan contract in the TIL disclosure.

There is nothing wrong with collecting interest from the note date simply because the FI has had to 'reserve' those funds as of that date and cann't otherwise invest them.

Better check state law before accruing interest during the rescission period. IN does not allow it.

Incorrect. Even if the rescindable amount was the last penny your bank planned to lend out, you could safely invest it until the 4th business day after the rescission period begins.