A borrower refinances their primary residence on Tuesday and receives the required TILA disclosures. Assuming no federal holidays, what is the last day they can exercise their right of rescission?
Correct Answer
B) Friday at midnight
Under TILA Section 125, borrowers have 3 business days to rescind. The rescission period expires at midnight of the third business day following consummation or delivery of the notice of right to rescind, whichever occurs later.
Why This Is the Correct Answer
Under TILA Section 125, borrowers have 3 business days to rescind. The rescission period expires at midnight of the third business day following consummation or delivery of the notice of right to rescind, whichever occurs later.
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?
People Also Study
General Mortgage Knowledge
23% of exam
Mortgage Loan Origination Activities
25% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
A consumer disputes an item on their credit report with a CRA. The CRA forwards the dispute to the furnisher, who confirms the information is accurate. However, the consumer provides the mortgage lender with documentation proving the debt was paid. The lender who furnished the original information must:
Next Question
A changed circumstance occurs that affects settlement charges. Within how many business days must the creditor provide a revised Loan Estimate?