A married couple jointly owns their primary residence. The husband signs a refinance loan alone without his wife's knowledge or consent. What are the wife's rescission rights?
Correct Answer
C) She has 3 years to rescind the transaction
Under TILA Section 125, when a borrower's principal dwelling secures a loan and proper rescission disclosures are not provided to all owners, the extended rescission period of 3 years applies. Since the wife was not provided disclosures as a property owner, she has 3 years to rescind.
Why This Is the Correct Answer
Under TILA Section 125, when a borrower's principal dwelling secures a loan and proper rescission disclosures are not provided to all owners, the extended rescission period of 3 years applies. Since the wife was not provided disclosures as a property owner, she has 3 years to rescind.
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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