A lender fails to provide the proper notice of right to rescind at closing. How long does the borrower have to exercise their right of rescission?
Correct Answer
C) 3 years from closing
Under TILA Section 125, if the required disclosures are not properly delivered, the right to rescind may be exercised until 3 years after consummation or upon sale of the property, whichever occurs first.
Why This Is the Correct Answer
Under TILA Section 125, if the required disclosures are not properly delivered, the right to rescind may be exercised until 3 years after consummation or upon sale of the property, whichever occurs first.
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?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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Previous Question
A lender is considering a mortgage application where the borrower's debt-to-income ratio is 45%, but all other QM requirements are met. The loan amount is within conforming limits. If the lender can demonstrate the borrower has substantial compensating factors, what type of loan could this be?
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A creditor discovers that a loan initially classified as non-HPML actually qualifies as an HPML due to a calculation error discovered 45 days after consummation. What action is required?