Right of rescission
How do we deliver the rescission notice on a refinance, track the three-business-day period and hold disbursement until it passes?
Deliver two copies to each owner, count the days by the rule, and hold the money. Callvu delivers the notice of the right to rescind (two copies per person entitled, with the material disclosures) at consummation, records the delivery for each, computes the period's end from the latest of consummation, the notice and the material disclosures under the rescission business-day definition, holds disbursement until the period expires with no rescission, records any rescission received by any method, and releases funding on the record.
In scopeSimpleCallvu moves: chase and verify, write back
Last updated November 7, 2026.
The problem today
The notice was given to the borrower but not the spouse on title, and the loan funded on day three.
A refinance secured by the principal dwelling gives each consumer with an ownership interest the right to rescind for three business days. The notice must go to each of them, two copies, with the material disclosures; the period runs from the latest of consummation, delivery of the notice, and delivery of the disclosures; and the lender may not disburse until it ends. A notice missed for a non-borrowing spouse extends the right to three years.
The counting uses the rescission definition of business day (every day except Sundays and federal holidays) and ends at midnight of the third day; funding on the morning of the third day is a violation. A rescission can be sent by any written means, and the lender must act on it.
The rule is exact, and the process should be too.
How it runs
From the requestto the system of record.
A refinance (or another transaction subject to rescission) is consummated. Callvu opens the rescission case with the parties entitled to rescind and the dates.
- Borrower
- Receives the notice copies and may rescind within the period.
- Funder
- Sees the period's end and releases only after it, on the record.
- Callvu
- Delivers to each party, computes the period, holds disbursement, records any rescission and releases.
Classify the parties
Each consumer with an ownership interest in the dwelling (the borrowers and any non-borrowing owners, such as a spouse on title) is identified from the title and the application as entitled to the notice.
Chase and verify delivery
Two copies of the notice with the material disclosures are delivered to each entitled person at consummation (at the table, or electronically with consent), and the delivery to each is recorded with the time; a missed delivery is flagged before the period is computed.
Compute and hold
The period's end is computed as midnight of the third business day (every day except Sundays and federal holidays) after the latest of consummation, the notice delivery and the material disclosures delivery; disbursement is held until then, and the funder sees the date and time.
Decide and release
If a rescission is received by any written method within the period, it is recorded, the lender's obligations to return money and release the lien start on their 20-day clock, and the loan is unwound. If none is received, disbursement releases on the record after the period, with the funding process.
Where it ends: Every entitled person received the notice, the period was counted by the rule, and the money moved only after it passed with no rescission, or the rescission was honored. The Decision Trace shows the parties, the dates and the computation; the Audit Trace shows each delivery and the release. The Callvu moves in this process are chase and verify and write back.
Runtime enforcement
What is enforcedwhile the work runs.
The regulations preloaded in Callvu Studio and the bank's own policies, applied as steps that run, not lines in a binder. A step that breaks a rule does not run, so a completed run was compliant.
The handoff
Between the front doorand the back office.
The front door
Consummation at the table or electronically; each entitled person receives their copies.
The back office
The funder sees the period's end and releases only after it; a rescission is handled on its clock.
The Decision Desk
- A missed delivery to an entitled person, or a rescission received, goes to the closing team or compliance in the Decision Desk with the dates and only the allowed outcomes.
Proof
In scope.Proof at scale, not one process at a time.
The kind of process Callvu runs in production for customers in this industry. Ask for a reference on this exact process. The results below are the industry's published proof; each claim code links to its record on agents.callvu.com.
Questions
What buyers ask next,answered plainly.
Who receives the rescission notice?
Every consumer with an ownership interest in the dwelling, including a non-borrowing spouse on title, two copies each, with the delivery recorded.
When can the loan fund?
After midnight of the third business day (counting every day except Sundays and federal holidays) following the latest of consummation, the notice and the material disclosures, with no rescission received.
What if the borrower rescinds?
The rescission is recorded, the security interest is void, and the lender returns any money and releases the lien within 20 days.
Related processes
Bring this process, or the one that costs you most.
We build it against your policies and your systems, train your team and stay with you through launch. You are live in weeks.