The Truth-in-Lending Act allows certain transactions to be rescinded by consumers; Transactions exempt from this right of rescission include which of the following residential mortgage transactions?
A) Cash out refinance
B) Reverse Annuity Mortgage
C) Purchase Money Mortgage
D) Home Equity Line of Credit

Question

Quizplus · Accepted Answer

The Truth-in-Lending Act allows consumers the right to rescind certain transactions within three business days, including home equity loans, refinancing agreements, and some personal loans. However, this right to rescind does not apply to purchase money mortgages, which are used to finance the purchase of a property. Therefore, choice C, the Purchase Money Mortgage, is exempt from the right of rescission, while the other options listed (A, B, and D) are not exempt.

The Truth-In-Lending Act Allows Certain Transactions to Be Rescinded by Consumers;