Which of the following documents must be provided to trigger the start of the 3-day rescission period?
Correct Answer
C) Both Truth-in-Lending disclosure and notice of right to rescind
Under TILA Section 125, the rescission period begins when the borrower receives BOTH the Truth-in-Lending disclosure AND the notice of right to rescind, or at consummation, whichever occurs later.
Why This Is the Correct Answer
Under TILA Section 125, the rescission period begins when the borrower receives BOTH the Truth-in-Lending disclosure AND the notice of right to rescind, or at consummation, whichever occurs later.
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 information is NOT required to be included in an AfBA disclosure?
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