Federal Mortgage LawsQuestion 76 of 400
A homeowner refinances the mortgage on her principal dwelling with a new lender. Under TILA, how long is her right to rescind the transaction after receiving the required disclosures and notice of the right to rescind?
a.Until the loan funds
b.Until noon the next day
c.Until midnight of the third business day
d.Until the end of 30 days
Explanation
For a refinance or other non-purchase-money loan secured by the consumer's principal dwelling, TILA gives a right to rescind until midnight of the third business day following consummation, delivery of the material disclosures, or delivery of the rescission notice, whichever occurs last. Business days for this purpose include Saturdays but not Sundays or federal holidays.
Law Reference: Truth in Lending Act (Right of Rescission, Reg Z 1026.23)Practice all 400 questions free — no signup required.
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