A refinance transaction closes on Friday. Due to a postal holiday, the required TILA disclosures are not delivered until the following Tuesday. The borrower wants to rescind on Thursday of that week. Can they still rescind?
Correct Answer
C) Yes, they have until Friday at midnight to rescind
The rescission period begins from the later of consummation or delivery of required disclosures. Since disclosures were delivered Tuesday, the three business days are Wednesday, Thursday, and Friday. The borrower has until Friday at midnight (11:59 PM) to rescind.
Why This Is the Correct Answer
The rescission period begins from the later of consummation or delivery of required disclosures. Since disclosures were delivered Tuesday, the three business days are Wednesday, Thursday, and Friday. The borrower has until Friday at midnight (11:59 PM) 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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On a refinance transaction, recording fees increase from $350 to $425 due to additional documents required by the county. The loan amount is $250,000. How should this be addressed?