Final answer:
Under Regulation Z, a borrower has three business days to rescind a mortgage loan, unless it is a high-cost loan.
Step-by-step explanation:
Under Regulation Z, also known as the Truth in Lending Act, a borrower has the right to rescind certain types of mortgage loans within three business days after signing the loan documents. This is known as the right of rescission. However, it is important to note that this right does not apply to all types of loans, and there are exceptions depending on the specific circumstances.
For high-cost loans, the borrower has a longer rescission period of three years. High-cost loans are defined as loans with higher interest rates, steep upfront fees, or costly prepayment penalties.
In Sally's case, assuming that the loan she is applying for is not a high-cost loan, she will have three business days to rescind the loan after signing off on it.