Truth in Lending

摘要

The Board is soliciting public comment on whether consumers would benefit from having greater flexibility in waiving the right of rescission in transactions with new creditors to refinance or consolidate home-secured loans (where no additional debt is incurred). The Riegle Community Development and Regulatory Improvement Act of 1994 directs the Board to make recommendations to the Congress regarding this narrow expansion of the waiver of the right of rescission, after consulting with the Consumer Advisory Council to the Board, consumers, representatives of consumers, lenders, and other interested parties. Under present law, consumers may waive the right of rescission in refinancings or consolidations with new creditors only when a bona fide personal financial emergency exists (whether or not additional debt is incurred). When a consumer refinances a loan with the same creditor and no additional debt is incurred, the right of rescission does not apply; if additional debt is undertaken, the right of rescission applies only to the new money advanced.