Law360, New York ( August 1, 2012, 1:42 PM EDT) -- The Truth in Lending Act requires lenders to provide borrowers with certain disclosures, and imposes certain criminal and civil penalties on lenders for noncompliance. Among other remedial rights, TILA affords borrowers the right to rescind a loan in equity. "TILA authorizes a borrower whose loan is secured with [a] 'principal dwelling' to rescind the loan transaction entirely 'until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required ... together with a statement containing [certain] material disclosures ... whichever is later.'"[1] "If the required TILA disclosures are never made, then the borrower's right of rescission under § 1635(f) 'shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first.'"[2]...
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