A Virginia lender holds loan proceeds for 9 days after a 2026 closing with no rescission period running. Does the unjustified funding delay meet the prompt-disbursement requirement?
Correct Answer
B) A ground for action: funds are disbursed promptly upon closing
Failure to disburse funds in accordance with any agreement connected with a mortgage loan, and promptly upon closing, taking into account any applicable right of rescission, is a ground for suspension or revocation. Other choices: an internal calendar is not the standard; interest for the delay is not what the ground turns on; and no minimum delay is specified. Source: Va. Code § 6.2-1619(A)(6)
Why This Is the Correct Answer
Failure to disburse funds in accordance with any agreement connected with a mortgage loan, and promptly upon closing, taking into account any applicable right of rescission, is a ground for suspension or revocation. Other choices: an internal calendar is not the standard; interest for the delay is not what the ground turns on; and no minimum delay is specified. Source: Va. Code § 6.2-1619(A)(6)
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