A borrower signs loan documents for a cash-out refinance on Tuesday at 2 PM. The lender delivers the required TILA disclosures on Wednesday at 10 AM via overnight mail. When does the rescission period expire?
Correct Answer
B) Saturday at 11:59 PM
Under TILA, the rescission period expires at midnight of the third business day after the later of: loan consummation or delivery of required disclosures. Since disclosures were delivered Wednesday (later than Tuesday consummation), the three business days are Thursday, Friday, and Saturday, making the deadline Saturday at 11:59 PM.
Why This Is the Correct Answer
Under TILA, the rescission period expires at midnight of the third business day after the later of: loan consummation or delivery of required disclosures. Since disclosures were delivered Wednesday (later than Tuesday consummation), the three business days are Thursday, Friday, and Saturday, making the deadline Saturday at 11:59 PM.
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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Under TRID's zero tolerance category, which fee cannot increase from the Loan Estimate to the Closing Disclosure?
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