Sec 1-Page 64

A borrower refinances the mortgage loan secured by the borrower’s principal residence. At closing, the lender explains that the borrower has a legal right to cancel the transaction within a specified time period because the transaction is subject to rescission.

Which transaction is generally subject to the right of rescission under Truth-in-Lending?

A lender closes a refinance transaction secured by a married couple’s principal residence. During a compliance audit, regulators review whether the lender properly delivered rescission disclosures to all required parties.

Under Truth-in-Lending rescission rules, who must receive the Notice of Right to Cancel?

A borrower refinances a principal residence loan subject to rescission. During closing, the settlement agent asks how many copies of the Notice of Right to Cancel each owner must receive.

Under Truth-in-Lending requirements, how many copies must be provided to each owner?

A lender closes a rescindable refinance transaction on a borrower’s principal residence. The borrower later asks how long the right of rescission remains available following closing.

Under Truth-in-Lending, until when may the consumer generally rescind the transaction?

A refinance transaction closes on Thursday and is subject to the right of rescission. During compliance training, a loan processor asks whether Saturday counts as a business day when calculating the rescission period.

Under Truth-in-Lending rescission rules, how is Saturday treated for purposes of rescission timing?

A married couple refinances their principal residence. One borrower mails a rescission notice shortly before midnight on the final business day of the rescission period, but the lender does not receive the notice until the following day after loan proceeds have already been disbursed to the other borrower.

Under Truth-in-Lending rescission rules, when is rescission considered to occur?