Alright, got an interesting situation here and I'm having trouble finding any certainty in the reg.

We have a husband and wife who are refinancing their primary residence. The day after consummation, the wife sends in a signed notice of rescission, cancelling the loan.

The husband calls the Bank the following day, saying that the wife is currently going through post-partum depression as a result of recent child birth, and did not mean to send in the cancellation, and now wishes to proceed with the loan as originated.

Since the Notice of Right to Rescind was already received by the bank,
1) Must we terminate the security interest and return all funds/etc. within 20 days, and then begin a brand new application? Or,
2) Is there any option that allows us to continue as is with a signed statement from the wife, e.g. a signed waiver from the wife stating that she sent the Notice in error and does not wish to exercise her right to rescind?

I don't see anything in the 1026.23 to support #2, but since the creditor has a 20-day window to terminate the security interest, I'm wondering if there is some type of window/allowance for reversing the decision if that choice is made by the consumer.

I appreciate any insight and feedback.

Thank you!

The day after consummation, the wife sends in a signed notice of rescission, cancelling the loan.

That rings the bell. No going back.

Unless the wife wants to say the signature on the rescission notice is a forgery, she rang the bell. Section 1026.23(d) restates what is found in the TILA: "the security interest giving rise to the right of rescission becomes void." There is no way to "un-void" a security interest.

Use the same documents as much as possible and expedite the transaction.

In a prior post, same subject, a guru posted "what would happen if there is a problem with the loan sometime in the future and the wife claims to the bankruptcy judge that she really wanted to rescind, but the big bad bank talked her out of it, even though they rescinded."