Under Illinois case law, a mortgage loan is consummated on the date of the loan closing (whether a purchase money loan or a refinancing). A number of Illinois courts have held that consummation occurs on the date of the loan closing for purposes of the TILA and Regulation Z.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.19(f)(1)(ii) (“. . . the creditor shall ensure that the consumer receives the [Closing Disclosure] no later than three business days before consummation.)

• Regulation Z, 12 CFR 1026.2(a)(13) (“Consummation means the time that a consumer becomes contractually obligated on a credit transaction.”)

• Regulation Z, Official Interpretations, 12 CFR 1026, Paragraph 2(a)(13), Comment 1 (“State law governs. When a contractual obligation on the consumer’s part is created is a matter to be determined under applicable law; Regulation Z does not make this determination. . . .”)

• Personius v. Homeamerican Credit, Inc., 234 F.Supp.2d 817, 820 (N.D. Ill. 2002) (The borrowers “became contractually obligated [for purposes of TILA] on the closing date of their mortgages . . . .”)

• Jenkins v. Mercantile Mortg. Co., 231 F.Supp.2d 737, 745 (N.D. Ill. 2002) (“A credit transaction is consummated for the purposes of TILA when the plaintiffs become contractually obligated on a credit transaction, in this case, the consummation being the closing of the loan.”)

• Streit v. Fireside Chrysler-Plymouth, Inc., 697 F.2d 193, 196 (7th. Cir. 1983) (The date the borrowers signed the retail installment contract for an auto loan was the date of consummation for purposes of the TILA.)