The right of rescission under TILA applies to a refinance of which type of property?
Correct Answer
A) Primary residence only
Under TILA Section 125, the right of rescission only applies to transactions secured by the consumer's principal dwelling. Secondary residences and investment properties are not covered.
Why This Is the Correct Answer
Under TILA Section 125, the right of rescission only applies to transactions secured by the consumer's principal dwelling. Secondary residences and investment properties are not covered.
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?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
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 receives an application on Monday but determines it is incomplete because the borrower failed to provide income documentation. On Thursday, the borrower provides the missing documents. When does the 3-business-day clock start for Loan Estimate delivery?
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