Last week, our forum focused on several key discussions relevant to loan processing professionals. Members engaged in a detailed conversation about the precise timing of rescission periods, a topic that sparked considerable debate and shared experiences. There was also a lively exchange of tips for managing loan application backlogs, as many are navigating increased volumes. Additionally, the community shared insights on new compliance updates and how these are impacting daily workflows.
This Week’s Hot Topics
When does rescission really start
This discussion is delving into the complexity of rescission periods, with members sharing their interpretations and experiences. It’s a crucial topic for ensuring compliance and avoiding costly mistakes. Read more here
Looking forward to another week of valuable discussions. Thank you for being such an engaged part of our community.
The 3-day rescission starts on the later of consummation or the last delivery of the TILA disclosures/notice and runs to midnight of the third business day (Saturdays count; Sundays and federal holidays don’t; 12 CFR 1026.23(a)(3): https://www.consumerfinance.gov/rules-policy/regulations/1026/23/#a-3). We set our LOS to stamp the final delivery time and auto-calc the end date, which saves me from counting on my fingers. @ReneeV do you use the actual eReceipt timestamp or a set cutoff hour so late-night eDisclosures don’t push the start?
In practice, I use the ‘mailbox rule’ for timing — if the notice is mailed, I assume receipt on the third business day and set an Encompass funding hold; if the borrower opens the eDisclosure same day, the audit trail lets me start sooner and it keeps the backlog from ballooning. Good reference here: https://www.consumerfinance.gov/ask-cfpb/what-is-the-right-of-rescission-en-1317/, and I add a one-day buffer when a federal holiday lands mid-period.
Quick tip from my files: I grab a screenshot of the eDisclosure audit trail showing the borrower’s actual “viewed” timestamp and drop it in the file before setting the rescission calendar — helps with the “backlogs” and cuts down on post-close stips; if there’s any doubt, I use the latest verifiable event. @Rita have you seen investors question funding without that audit trail?