What is the delivery timeframe for a right of rescission?

The correct answer highlights that the right of rescission is provided at closing. This is a crucial aspect of the Truth in Lending Act, which grants borrowers the right to cancel certain types of loans, specifically those secured by their principal residence, within a specified timeframe after closing.

When a borrower enters into a transaction for a home equity loan or a refinance, they are informed of their right to rescind the loan agreement at the closing. The appropriate timeframe for exercising this right is three business days from the date of closing or the date the borrower receives all necessary disclosures, whichever is later. This allows borrowers the opportunity to reconsider their decision after the terms of the loan and their obligations have been fully disclosed.

Understanding that this right essentially serves as a consumer protection mechanism is important. It ensures that borrowers can take the necessary time to weigh their options before committing to a loan, thereby enhancing transparency and borrower confidence in the lending process.