Answer:
If you fail to provide the right to cancel it extends the rescission period to 3 years and in some cases indefinitely if foreclosure becomes an issue.
The rescission period ends 3 business days after the last of 3 events have taken place. Consummation, delivery of material disclosure, delivery of the right to cancel. If the loan was consummated and the material disclosures were provided on 2/13 and the right to cancel was delivered on 2/14 the rescission period expires 3 business days from the 14th. If you did not wait the required 3 business days from the last of the events happening you did not provide a proper right to cancel and the rescission period is extended to 3 years and in some cases indefinitely if foreclosure becomes an issue.
First published on BankersOnline.com 7/30/12
print
share