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A borrower refinances a mortgage loan secured by the borrower’s principal residence. Two years later, the borrower discovers that the APR disclosed at closing was understated beyond the tolerance permitted under Truth-in-Lending requirements.

Under what circumstance could the borrower have a three-year right of rescission?

During a post-closing audit, a lender discovers that the total of payments disclosed on a refinance transaction was incorrect. The borrower later seeks rescission rights under Truth-in-Lending.

Which disclosure error could give the borrower a three-year right to rescind?

A borrower exercises a three-year rescission right after discovering a Truth-in-Lending disclosure error that actually resulted in slightly lower disclosed costs than required. The lender argues that rescission should not apply because the borrower was not financially harmed.

Under Truth-in-Lending rescission rules, which statement is correct?

A borrower successfully rescinds a mortgage transaction under Truth-in-Lending nearly three years after closing. The borrower asks what amounts the lender must refund as part of the rescission process.

Under rescission rules, what must the lender generally refund to the borrower?

A borrower asks a lender to waive the standard three-business-day rescission waiting period so loan proceeds can be disbursed immediately after closing. The borrower states that receiving the funds quickly would simply be more convenient.

Under Truth-in-Lending rules, when may the three-business-day rescission period be waived?

A borrower requests that a lender waive the three-business-day rescission period because emergency medical expenses require immediate access to loan proceeds. The lender explains that additional documentation is required before determining whether the rescission period may be waived.

What is required before a lender may determine whether a rescission waiver is permitted?