A borrower wants to waive their right of rescission to expedite their refinance closing. Under what circumstances can this be done?
Correct Answer
C) Only in cases of bona fide personal financial emergency
Under TILA Section 125, the right of rescission can only be waived in cases of bona fide personal financial emergency that necessitates the immediate use of the credit. The waiver must be in writing and describe the emergency.
Why This Is the Correct Answer
Under TILA Section 125, the right of rescission can only be waived in cases of bona fide personal financial emergency that necessitates the immediate use of the credit. The waiver must be in writing and describe the emergency.
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?
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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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A borrower enters military service after obtaining a mortgage. When must the lender reduce the interest rate to the SCRA maximum?
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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?