West Virginia Mortgage Law Practice Test 2025 - Free Mortgage Law Practice Questions and Study Guide

The correct answer indicates that, for loans that are subject to rescission under the Good Funds Settlement Act, the funds must be made available no later than three days after closing. This timing requirement is crucial because it aligns with the consumer's right to rescind certain transactions under the Truth in Lending Act.

The three-day period allows borrowers to review the terms of the mortgage and make an informed decision, ensuring that they have the opportunity to reconsider their commitment. This framework is designed to protect consumers and promote transparency in the settlement process.

In contrast, having funds available one day prior to closing would not accommodate the consumer's right to rescind after the closing has taken place. Funds being available on the day of closing could create confusion regarding the rights of the borrower post-closing. Allowing funds to be available only after the rescission period adds unnecessary delay and does not serve the purpose of the Act in facilitating timely access to funds while ensuring consumer rights are upheld.