Finance
Texas's Article XVI Section 50(a)(6) home equity rules include a '12-day cooling off period' which means:
AThe lender has 12 days to review the application
BThe borrower cannot close or be required to complete a home equity loan until at least 12 days after submitting the signed application✓ Correct
CThe borrower can cancel the loan for any reason within 12 days of closing
DThe title company has 12 days to prepare closing documents
Explanation
Texas home equity law requires that a borrower cannot close on or be obligated under a Section 50(a)(6) home equity loan until at least 12 calendar days after they submit their signed loan application and receive required disclosures. This cooling-off period gives borrowers time to reconsider before being committed to the loan.
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