What is the first possible day a cash-out refinance loan could fund after a settlement if the rescission period ends at midnight on Friday?

In scenarios involving cash-out refinance loans, it's important to understand the legal requirements concerning the right of rescission. The right of rescission is a three-day period during which borrowers can reconsider and cancel the transaction after the loan closing—this includes the weekend.

If the rescission period ends at midnight on Friday, the next legal business day falls on Saturday. However, while Saturday is not a traditional business day for financial institutions, the rescission period technically ends at the close of that day. Therefore, the first day on which a cash-out refinance loan could fund would be the day following the end of the rescission period. In this case, that day is Monday.

Thus, the understanding that funding can occur after the rescission period is critical. Since the rescission period concludes at midnight on Friday, with no funding occurring on that day, the earliest funding possibility would transition into the subsequent business day, which is Monday. The option indicating that the first possible funding day after the end of the rescission period associated with a settlement is Monday is accurate.