What happens after TILA Regulation Z rescission period is over?
Lenders are expected to disburse funds after the rescind time is over. However, before they do that they should make sure the borrower rescission decision has not been mailed. Borrowers are allowed to rescind via post on the third day and a rescission arriving on the 4th or 5th day after closing is still valid. To avoid potential problems, Regulation Z advises that lenders make sure the loan has not been rescinded by requesting a Notice of Rescission form from all owners with interest in the transaction. At the same time, borrowers are advised not to sign a Notice of Rescission before the 3rd day after closing so that they don’t give away their right to rescind.
