Finance
What is the purpose of the 'three-day right of rescission' under TILA for certain home equity loans?
ATo allow lenders to change loan terms within 3 days
BTo give borrowers 3 business days after signing to cancel (rescind) the loan without penalty✓ Correct
CTo require loan documents to be reviewed for 3 days before signing
DTo allow the lender to verify the appraisal
Explanation
TILA's right of rescission gives borrowers 3 business days after consummation (or receipt of required disclosures, whichever is later) to cancel certain non-purchase mortgage loans (refinances, home equity loans) secured by their primary residence.
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