Fact Pattern 22-2
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people, including Benny, who could not easily obtain credit under other loan programs.
-Refer to Fact Pattern 22-2. Under federal law, if 24-Hour Credit fails to provide certain material disclosures with respect to the loan, Benny's right to rescind the loan

Question

Fact Pattern 22-2 
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people, including Benny, who could not easily obtain credit under other loan programs.
-Refer to Fact Pattern 22-2. Under federal law, if 24-Hour Credit fails to provide certain material disclosures with respect to the loan, Benny's right to rescind the loan

Quizplus · Accepted Answer

Under federal law, borrowers who obtain high-cost mortgage loans have the right to rescind the loan for up to three years if the lender fails to provide certain material disclosures, such as the annual percentage rate, finance charges, and other loan terms. Therefore, Benny's right to rescind the loan is extended for up to three years if 24-Hour Credit Corporation fails to provide the required disclosures.