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During a disclosure desk review, the MLO encounters a TILA HELOC Disclosures issue. Which response should match the file facts to the correct rule?

Correct Answer

D) Use the principal-dwelling security interest to analyze rescission

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 "Use the principal-dwelling security interest to analyze rescission".

Answer Options
A
Apply a different loan-program rule without checking the file facts.
B
Resolve the TILA HELOC Disclosures issue with the appraisal review exception that does not fit the facts.
C
Use the same treatment for all mortgage products without comparing program requirements.
D
Use the principal-dwelling security interest to analyze rescission

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 "Use the principal-dwelling security interest to analyze rescission".

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