A Texas homeowner closes on a home equity loan on January 15. The loan proceeds are not actually disbursed until January 18, three days after closing. The borrower exercises the right of rescission on January 26. Under Texas Constitution Article XVI, Section 50(a)(6), is this rescission timely?
Correct Answer
D) Yes, because the 12-day rescission period runs from the date of closing, making January 27 the last day to rescind
Under Texas Constitution Article XVI, Section 50(a)(6)(Q)(x), the borrower has the right to rescind a home equity loan within 12 days of the closing date. The closing date is January 15, so the borrower has until January 27 to rescind. The rescission on January 26 (day 11) is timely.
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A lender in Texas wants to make a home equity loan to a borrower whose homestead is agricultural property used primarily for farming. Under Texas Constitution Article XVI, Section 50, can a home equity loan be secured by agricultural homestead property?
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A Texas lender originates a home equity loan that inadvertently exceeds the 80% LTV cap due to an appraisal error discovered after closing. The borrower notifies the lender of the defect. Under Texas Constitution Article XVI, Section 50(a)(6)(Q)(x), how should the lender cure this violation?