Under the federal Truth in Lending Act (TILA), the 3-day right of rescission applies to which of the following transactions?
Correct Answer
B) Refinances and HELOCs secured by the borrower's primary residence
Under TILA, the 3-day right of rescission applies to non-purchase refinances and home equity lines of credit (HELOCs) secured by the borrower's primary residence. It does not apply to purchase-money mortgages (where the loan is used to acquire the home), nor does it apply to commercial real estate transactions. This federal rule applies uniformly in Maine as in all states.
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