We actually are one of those banks that makes customers come back after three days to confirm that they do not wish to rescind the transaction.
How long do others who do not confirm with the customer that they do not wish to rescind wait before disbursing funds? Do you deposit the funds or mail the check to the borrower as soon as possible after the rescission period or do you wait for a specified period of time after the expiration of the rescission period to ensure nothing is coming in the mail before releasing the funds?
I know we could contact the customer to inquire if they have rescinded but that makes more work too. We would like to make this as simple and seamless as possible.

That is a risk base decision for your bank.

We will disburse the first business day after the expiration of the rescission period. (In the 4 1/2 years I have been here we have never had a rescission.)

Thanks Dan. We have only had a customer rescind once that I know of in the past 6 years. So I do view the risk as minimal but wanted to get a feel for what others were doing. The lenders always are telling me what the other guys are doing...and just need to find out for myself!

(I just can't always trust everything they say....I have no idea why ) In some ways this job really helps you prepare to be a better parent!

FWIW, we do the same as Dan, for the same reasons.

If you need more input, we do the same as Dan and GreatBlue.

Thanks for the responses I appreciate the feedback.

Sorry about that Dan.

We have had more rescissions lately due to disputes about the mortgage broker fee at the closing table; eventhough it was on the GFE.

We had a rescission where the applicant wanted to get a loan at a different lender but wanted a complete refund of the up-front fees. The LO said no refunds (appraisal/credit bureau), so the customer closed the loan then rescended the transaction.

Dan, just out of curiosity, did you know the borrower had rescinded before you funded?

Yes.

I think the Reg or commentary says that you have to give the customer enough time that if they put the the rescission form in the mail on the 3rd day to rescind, then you have to allow them that time span. We felt uncomfortable with determining when this is, due to the unknown of the USPS and always require the comformation form, even though it is not required by the Reg.

We also desire a confirmation of non cancellation, preferably in writing, but sometimes allow our closing staff to accept verbal acknowledgements.

We always either contacted each via telephone or had them sign, until last month. We have had 2 recind in the past 5 years, so that is pretty good odds. If they recind and you find out 1 or 2 days after funding it is still fixable, like Dan said before we feel it is risk based and the time we put in isn't worth the very minimal risk. Both times we knew before it funded so we haven't gotten burned yet.

My mortgage manager came down this morning and asked about giving the ROR to the consumer. We send two copies to the closer, 4 copies if it is a joint loan.
Currently we require the acknowledgment of receipt to be given on two separate disclosure. Our closers are saying we are the only FI requiring this. Everyone else lets the two borrowers sign on the same disclosure for acknowledgement of receipt.
I looked through the reg and commentary and the only thing I can find is that each consumer should receive two copies, I can't find anything about how they have to sign. Any help is appreciated.

There is no regulatory requirement for them to sign/acknowledge the receipt of the notice.

Since no signature is required, you are fine having both borrowers sign one acknowledgment of receipt, if I understand your question. But in doing this you want it to clearly show that EACH received a copy. Some reviewers may be confused if it appears one copy was given and not one to each borrower. You may have this addressed in your policy or by your investors if you sell these. You should ensure a change is in agreement with these.