Contracts

In Tennessee, a 'right of rescission' under the Truth in Lending Act (TILA) applies to:

AAll residential purchase mortgages
BRefinances and home equity loans on the borrower's principal residence✓ Correct
CVA loans only
DCommercial mortgages only

Explanation

TILA's right of rescission applies to refinances and home equity loans secured by the borrower's principal residence. It gives the borrower 3 business days to cancel. It does NOT apply to purchase money mortgages.

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