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When Does the New Rescission Period Begin?

Answered by: 
Lucy Griffin

Question: 
On the day of funding on a refinance the lender increases their loan origination fee by $1,500.00. They provide the new TIL and itemization, but state they do not require the borrower to sign the new documents and want the loan disbursed according to schedule. Wouldn't a new rescission period begin when the borrower receives the new disclosure?
Answer: 

First, with all the documents signed three days earlier, how can the lender add such a substantial fee? It is unquestionably a finance charge and hasn't been disclosed. If the lender really, really wants to treat the customer like this, the lender must, at a minimum, provide new disclosures and a new rescission period.

First published on BankersOnline.com 6/12/06

First published on 06/12/2006

Filed under: 
Lending
Filed under lending as: 
Disclosures
Finance Charge

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