Customer Rescinded the Loan

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Question:

I had a customer rescind in the three day time period. What needs to be done with all the documents?

Answer:

The security interest is void and the borrower is not liable for anything, even fees paid to third parties, application deposits, etc. Refer to Section 226.23(d) (Effects of Rescission) for more information.

First published on BankersOnline.com 5/26/08