A California covered loan is originated with a willful and knowing violation of the covered-loan rules. Which borrower remedy is available under California Financial Code section 4978?
Correct Answer
D) Actual damages or $15,000, whichever is greater, plus attorney fees and costs
For a willful and knowing covered-loan violation, California Financial Code section 4978 allows the borrower to recover actual damages or $15,000, whichever is greater, plus attorney fees and costs. The prior legacy wording incorrectly treated the issue as a mandatory-counseling rescission rule.
Why This Is the Correct Answer
For a willful and knowing covered-loan violation, California Financial Code section 4978 allows the borrower to recover actual damages or $15,000, whichever is greater, plus attorney fees and costs. The prior legacy wording incorrectly treated the issue as a mandatory-counseling rescission rule.
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