Fact Pattern 16-2 (Questions 21-22 apply)
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 16-2. 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

Quizplus · Accepted Answer

Under federal law, if 24-Hour Credit fails to provide certain material disclosures with respect to a high-cost and high-fee mortgage, the borrower's right to rescind extends for up to three years. This means that Benny would have up to three years to rescind the loan if 24-Hour Credit did not provide the necessary disclosures.

Fact Pattern 16-2 (Questions 21-22 Apply)