Hello,

In looking through other threads and looking at 1026.15(c), it appears that if we didn't give rescission to HELOC borrowers properly (last day to cancel was not written in) and no funds have been advanced, we can give a late rescission or get a written statement from the borrowers that they haven't rescinded.

(c) Delay of creditor's performance. Unless a consumer waives the right to rescind under paragraph (e) of this section, no money shall be disbursed other than in escrow, no services shall be performed, and no materials delivered until after the rescission period has expired and the creditor is reasonably satisfied that the consumer has not rescinded. A creditor does not violate this section if a third party with no knowledge of the event activating the rescission right does not delay in providing materials or services, as long as the debt incurred for those materials or services is not secured by the property subject to rescission.

5. Delay beyond rescission period. i. The creditor must wait until it is reasonably satisfied that the consumer has not rescinded. For example, the creditor may satisfy itself by doing one of the following:

A. Waiting a reasonable time after expiration of the rescission period to allow for delivery of a mailed notice.

B. Obtaining a written statement from the consumer that the right has not been exercised.

If no funds have been advanced, I would be providing them with a correct and completed right of rescission notice and start the rescission clock over.

If funds were advanced on a closed end loan and a Notice of Right to Cancel was NOT given at all, giving the Notice now (several months later) would be pointless and not correct the oversight. We will still have the 3-year right to rescind regardless, is that correct?

For a closed-end loan, you are on the hook for three years.

Thank you for the confirmation!!

If no funds have been advanced, I would be providing them with a correct and completed right of rescission notice and start the rescission clock over.

This is your best option since no advances have been made or you can provide the rescission notice each time they request an advance, however if they can write checks for the advances that would be hard to monitor.