When two borrowers are refinancing a mortgage loan, the notice of the right to rescind:
A.
must be given to both borrowers, but either borrower is permitted to rescind the loan.
B.
must be given to both borrowers, and both borrowers must agree to rescind the loan.
C.
is permitted to be given to either of the borrowers, and only one borrower is needed to rescind the loan.
D.
is permitted to be given to either of the borrowers, but both borrowers need to sign the notice to rescind the loan.
The Answer Is:
A
This question includes an explanation.
Explanation:
Under TILA’s right of rescission, when there are multiple borrowers with an ownership interest in the property, each owner must receive notice of the right to rescind. If any one of them exercises the right, the loan is rescinded.
“When more than one consumer has the right to rescind, the exercise of the right by one consumer is effective as to all.”
— 12 CFR § 1026.23(a)(4), Regulation Z
[References:, , CFPB, Right of Rescission, , 12 CFR § 1026.23(a)(4), , ===========, , , , , ]
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