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.
Sign up free to see the explanation and track your rank →
More National Real Estate Exam financing practice
- A borrower has a mortgage where the monthly payments are not large enough to cover the int
- An FHA loan requires the borrower to pay which type of insurance premium?
- If a borrower fails to make payments and the lender invokes the 'due-on-sale' clause becau
- In a state following 'lien theory,' who holds the legal title to the property while the lo
- What happens to Private Mortgage Insurance (PMI) under the Homeowners Protection Act when
- What is the primary function of the security instrument in a real estate loan?
- What is the specific purpose of the 'acceleration clause' in a mortgage?
- A borrower fails to make three consecutive mortgage payments… — Which clause in the promis