Finance
Under the Truth-in-Lending Act (TILA), a borrower's right of rescission applies to:
AAll residential mortgage transactions
BRefinance transactions on a primary residence with a new lender✓ Correct
CPurchase money mortgages for a primary residence
DVA and FHA loans only
Explanation
The right of rescission under TILA gives borrowers three business days to cancel a refinance (or certain other non-purchase transactions) secured by their principal dwelling. It does not apply to purchase money mortgages.
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