Which law ensures that some borrowers have the right of rescission for three business days after a loan contract is signed?

The law that ensures some borrowers have the right of rescission for three business days after a loan contract is signed is Regulation Z. This regulation implements the Truth in Lending Act (TILA), which aims to promote informed use of consumer credit by requiring clear disclosure of key terms and costs associated with lending.

The right of rescission specifically allows borrowers to reconsider the loan terms and cancel the transaction if they feel it is unfavorable. This three-day window is crucial because it provides borrowers an opportunity to make an informed decision without the pressure of an immediately binding contract.

Regulation X, on the other hand, primarily deals with the Real Estate Settlement Procedures Act (RESPA) and focuses on promoting transparency in the closing process. The Equal Credit Opportunity Act prohibits discrimination in lending but does not provide rescission rights. Title VIII refers to the Fair Housing Act, which addresses discrimination in housing but does not pertain to the right of rescission for loan contracts.