Hi - Based on the below - for Texas, can anyone advise what you are using for consummation? When the loan funds? Thank you in advance,
Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan. The point in time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable state law. (§ 1026.2(a)(13) and Comment 2(a)(13)-1).

The consumer is contractually obligated at closing.

Thank you for the response. Can you link me the Texas law that states this, for reference? thanks again

I don't understand what your question relates to. Are you asking about TILA/RESPA or Texas Law? These are unrelated. If for Texas law, in reference to what? What is prompting your question?

It is TILA Read the original post: (§ 1026.2(a)(13) and Comment 2(a)(13)-1).

And there is no state law I can point to that says this. The closest I can come is to point to a case out of the 5th Circuit, which is the federal court that covers Texas, Louisiana, and Mississipi.

https://casetext.com/case/clark-v-troy-and-nichols-inc

If you want to call the day of funding the date of consummation, do so at your peril.

TY so much! We are going with when they sign.

I am looking at this definition as well to determine if consummation (date contractually obligated) is simply the date the Note is signed (in Texas).

From page 53 of the CFPB's TRID Compliance Guide: Is “consummation” the same thing as closing or settlement? (§ 1026.2(a)(13))

No, consummation may commonly occur at the same time as closing or settlement, but it is a legally distinct event. Consummation occurs when the consumer becomes contractually obligated to the creditor on the loan, not, for example, when the consumer becomes contractually obligated to a seller on a real estate transaction.

The point in time when a consumer becomes contractually obligated to the creditor on the loan depends on applicable State law. (§ 1026.2(a)(13) and Comment 2(a)(13)-1). Creditors and settlement agents should verify the applicable State laws to determine when consummation will occur..."

If consummation does occur on the date the Note is signed, can we successfully begin the rescission period on a rescindable purchase transaction (bridge loan) prior to the settlement date (i.e. by executing the Note, TIL disclosure, ROR acknowledgement and Deed of Trust for the existing residence) all 4 days prior to the scheduled closing for the purchase transaction on the new home.... so that the seller gets their funds on the day of closing.

Thoughts?

I don't understand your question. How else would closing and funding work? When you execute documents and you begin the right of rescission period so that the seller gets their funds is up to you and the borrower?

ahanna -- That sounds like 2 closings? A closing on your loan with final disclosures to borrower, then a closing for the seller? It might be simpler to not have the seller come in for 4 days, or just wait for the proceeds.