Fact Pattern
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 16-1A.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 
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 16-1A.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 the Truth in Lending Act (TILA), borrowers have the right to rescind certain mortgage loans for up to three years if the lender fails to provide certain material disclosures. This applies specifically to high-cost mortgage loans, which have higher interest rates, fees, and other costs than standard mortgage loans. Therefore, if 24-Hour Credit fails to provide the necessary disclosures to Benny, his right to rescind the loan would be extended for up to three years, giving him more time to consider his options and potentially find a better loan product.

Fact Pattern 24-Hour Credit Corporation Issues High-Cost and High-Fee Mortgage Products to Mortgage