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#2259371 - 09/08/21 04:48 PM Reg Z: Rescission
SallyGirl Offline
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For an electronic closing on a HELOC loan, borrowers signed the Credit Agreement on Sunday, 8/15/21. The Notice of Right to Cancel and material disclosures was provided on the prior Thursday, 8/12/21. Does the ROR expire on Monday, 8/16/21 or on Wednesday, 8/18/21?

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#2259376 - 09/08/21 05:08 PM Re: Reg Z: Rescission SallyGirl
rlcarey Online
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Paragraph 23(a)(3)
1. Rescission period. i. The period within which the consumer may exercise the right to rescind runs for 3 business days from the last of 3 events:

A. Consummation of the transaction.

B. Delivery of all material disclosures.

C. Delivery to the consumer of the required rescission notice.

Since the loan was not consummated until the Credit Agreement was signed, then it would be Wednesday.
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#2259377 - 09/08/21 05:10 PM Re: Reg Z: Rescission SallyGirl
Skittles Online
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I agree with Randy. You can fund on Thursday.
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#2259378 - 09/08/21 05:11 PM Re: Reg Z: Rescission SallyGirl
Skittles Online
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Curious - what date did you put on the rescission notice as to it's expiration if it was provided prior to the credit agreement/
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#2259379 - 09/08/21 05:18 PM Re: Reg Z: Rescission Skittles
SallyGirl Offline
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8/16/21.

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#2259381 - 09/08/21 05:20 PM Re: Reg Z: Rescission rlcarey
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Thanks Randy for confirming my thoughts on this.

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#2259382 - 09/08/21 05:21 PM Re: Reg Z: Rescission SallyGirl
rlcarey Online
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Then you need to hold your breath for three years.
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#2259383 - 09/08/21 05:33 PM Re: Reg Z: Rescission rlcarey
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Material disclosures were provided the same date as the ROR Notice. Customer
took a few days to sign the Agreement.

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#2259384 - 09/08/21 06:01 PM Re: Reg Z: Rescission SallyGirl
rlcarey Online
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Correct and your right of rescission notice told the borrower that their right to rescind expired at midnight on 08/16 rather than 08/18, which blew your right of rescission window and extends the right of rescission for three years.
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#2259450 - 09/09/21 03:31 PM Re: Reg Z: Rescission SallyGirl
John Burnett Offline
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Randy, in a case like this, could the rescission problem have been avoided if the lender had provided a new rescission notice with the correct date when the agreement was signed?
Last edited by John Burnett; 09/09/21 03:41 PM. Reason: clarification
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#2259456 - 09/09/21 04:19 PM Re: Reg Z: Rescission SallyGirl
rlcarey Online
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Technically, yes. Although then you might have an examiner asking about customer confusion and UDAAP in providing the consumer with multiple rights of rescission with various expiration dates, but that is the way I would have definitely gone.

Or technically, I believe that you could have provided it even later and given them three business days from the delivery of the right of rescission notice with a proper date three business days in advance, as long as it was prior to allowing any draws. Once the first draw was allowed - the goose was cooked.
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