A married couple is refinancing their primary residence. Both spouses are on the title but only one is on the loan. Who has the right to rescind?
Correct Answer
C) Both spouses
Under TILA Section 125, each consumer whose ownership interest is subject to the security interest has the right to rescind. Since both spouses own the property, both have rescission rights regardless of loan obligation.
Why This Is the Correct Answer
Under TILA Section 125, each consumer whose ownership interest is subject to the security interest has the right to rescind. Since both spouses own the property, both have rescission rights regardless of loan obligation.
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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