Under TILA, the right of rescission applies to which type of mortgage transaction on a consumer's principal dwelling?
Correct Answer
B) Refinances and home equity loans only
Under TILA Section 125, the right of rescission applies to refinances and home equity loans secured by the consumer's principal dwelling, but NOT to purchase money mortgages.
Why This Is the Correct Answer
Under TILA Section 125, the right of rescission applies to refinances and home equity loans secured by the consumer's principal dwelling, but NOT to purchase money mortgages.
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 mortgage broker has an affiliated relationship with an appraisal management company where the broker's spouse owns a 20% interest. The broker refers all loans to this AMC but charges borrowers the same appraisal fee regardless of which appraiser is used. This arrangement:
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