After a borrower exercises their right of rescission on a refinance, the lender must return all money paid by the borrower. Which of the following is NOT required to be returned?
Correct Answer
C) Third-party appraisal fees paid to the appraiser
Under TILA Section 125(b), upon rescission, the creditor must return any money or property given by the borrower. However, fees paid directly to third parties for services already rendered (like appraisal fees paid to the appraiser) are generally not required to be returned by the lender, as these represent value already received.
Why This Is the Correct Answer
Under TILA Section 125(b), upon rescission, the creditor must return any money or property given by the borrower. However, fees paid directly to third parties for services already rendered (like appraisal fees paid to the appraiser) are generally not required to be returned by the lender, as these represent value already received.
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?
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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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A lender provides a Closing Disclosure on Friday afternoon via email to a borrower who requested electronic delivery. Assuming no holidays, what is the earliest day the loan can close?
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