A Maryland borrower rescinds a 2026 loan under the federal truth in lending rules after paying a finder fee. Must the finder fee be refunded when the borrower exercises that rescission right?
Correct Answer
A) A refund of the finder fee follows the exercise of that rescission right
The refund entitlement covers the borrower exercising the right to rescind the loan transaction under the federal Truth in Lending Act or any similar federal or state law, and the lender must separately have advised the borrower in writing of that refund right where the fee came out of the proceeds. Other choices: the loan being made is the setting; federal and similar state rights both count; and the lender own charges are a separate matter. Source: Md. Com. Law § 12-806(2)
Why This Is the Correct Answer
The refund entitlement covers the borrower exercising the right to rescind the loan transaction under the federal Truth in Lending Act or any similar federal or state law, and the lender must separately have advised the borrower in writing of that refund right where the fee came out of the proceeds. Other choices: the loan being made is the setting; federal and similar state rights both count; and the lender own charges are a separate matter. Source: Md. Com. Law § 12-806(2)
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