Truth in Lending: 5.4.3.3.2 Tolerances for rescission outside of foreclosure
The tolerance for rescission remedies, except after initiation of foreclosure as discussed below, is more complicated. The general rule allows a tolerance for an understatement of $100 or 1/2 of 1% of the total amount of credit extended, whichever is greater.73 The tolerance for these transactions can be quite a large amount. For example, in a $100,000 loan, the tolerance for purposes of rescission would be $500.