A lender originates a high-cost mortgage under HOEPA. Three days before consummation, the borrower decides to cancel the transaction. What are the borrower's rights?
Correct Answer
B) The borrower can cancel and is entitled to a full refund of all fees paid
HOEPA provides borrowers with the right to cancel a high-cost mortgage until midnight of the third business day following consummation, and they are entitled to a refund of all money paid in connection with the transaction.
Why This Is the Correct Answer
HOEPA provides borrowers with the right to cancel a high-cost mortgage until midnight of the third business day following consummation, and they are entitled to a refund of all money paid in connection with the transaction.
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A servicer receives a borrower's qualified written request on December 15th questioning an escrow analysis. Due to the holidays, the servicer's offices are closed December 24-26 and January 1-2. The servicer must respond no later than: