A borrower receives TILA disclosures for a mortgage loan on Thursday and the lender's office is closed Friday for a holiday. Assuming no changes to the loan terms, what is the earliest day the loan can be consummated?
Correct Answer
C) The following Monday (first business day after 7 business days)
Under TILA Section 1026.19(e), the 7-business-day waiting period excludes Sundays and federal holidays. With Thursday as day 1 and Friday being a holiday, the 7th business day falls on the following Monday, making consummation possible that Monday.
Why This Is the Correct Answer
Under TILA Section 1026.19(e), the 7-business-day waiting period excludes Sundays and federal holidays. With Thursday as day 1 and Friday being a holiday, the 7th business day falls on the following Monday, making consummation possible that Monday.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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