Under TILA, the right of rescission applies to which type of transaction?

Under TILA, the right of rescission applies

Multiple choice — select the best answer

AThe purchase of a primary residence
BAn investment-property purchase loan
CA refinance with a new lender or a home-equity loan on a primary residence
DA loan to purchase a vacation home

✓ Correct answer: C. A refinance with a new lender or a home-equity loan on a primary residence The TILA right of rescission applies to non-purchase loans secured by the consumer's principal dwelling (e.g., refinances with a new creditor, HELOCs). Purchase-money loans are not rescindable.

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Topic: Federal Mortgage Law

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Under TILA, the right of rescission applies to which type of transaction?

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