medium · National Real Estate Exam financing
A borrower receives a 'Notice of Right to Cancel' that states they have until midnight on Saturday to rescind. However, the lender failed to provide the Loan Estimate within three days of application.
What is the effect on the rescission period?
- The borrower must sue the lender in court to stop the loan from closing.
- It has no effect since the Loan Estimate is purely a RESPA disclosure item.
- It may be extended because a material disclosure was not properly delivered
- The borrower can only rescind if they are able to prove they suffered actual financial harm.
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