A lender discovers they provided incorrect TILA disclosures after closing a refinance. What must they do regarding the borrower's rescission rights?
Correct Answer
B) Provide corrected disclosures and restart the 3-day period
Under TILA Section 125, if material disclosures are found to be inaccurate, the creditor must provide corrected disclosures, which restarts the 3-business-day rescission period from the date of delivery of the corrected disclosures.
Why This Is the Correct Answer
Under TILA Section 125, if material disclosures are found to be inaccurate, the creditor must provide corrected disclosures, which restarts the 3-business-day rescission period from the date of delivery of the corrected disclosures.
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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