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Can Customer Rescind a ROR Given Unnecessarily

Question: 
If a Bank provides the borrower with a right of rescission, but wasn’t required to by law (i.e. on a purchase money transaction) and material disclosures were not provided (i.e. the final Truth in Lending disclosure provided at closing was not accurate and the APR was understated), is the borrower entitled to rescind the transaction up to three years after closing?
Answer: 

Section 125(e)(1) of the TIL Act states that none of the ROR rules apply to a residential mortgage transaction - including the 36 month extended rescission period.

First published on BankersOnline.com 11/07/05

First published on 11/07/2005

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