A loan team is about to close a file involving HELOC and open-end credit rules and open-end credit rules. Which action should occur first?
Correct Answer
C) Recognize rescission if the HELOC is secured by a principal dwelling
HELOCs are open-end credit plans secured by a dwelling with special disclosures and rescission rules when secured by a principal dwelling. The best answer is "Recognize rescission if the HELOC is secured by a principal dwelling".
Why This Is the Correct Answer
HELOCs are open-end credit plans secured by a dwelling with special disclosures and rescission rules when secured by a principal dwelling. The best answer is "Recognize rescission if the HELOC is secured by a principal dwelling".
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