Under which law does a borrower have the right to cancel a loan within three days?

The correct answer is the Truth-in-Lending Act. This law establishes regulations that require lenders to disclose key terms of a loan in a clear and understandable manner. Among its provisions, the Truth-in-Lending Act gives borrowers the right to cancel certain types of loans, specifically those secured by the borrower's principal residence, within three business days after closing.

This "right of rescission" is designed to protect consumers by ensuring they have time to reconsider their financial decisions regarding the loan, allowing them to avoid a hasty commitment. Borrowers can exercise this right without penalty, and lenders are required to provide a notice of this right at the time of closing.

The other laws mentioned serve different purposes. The Fair Housing Act prohibits discrimination in housing and lending practices. The Home Mortgage Disclosure Act requires lenders to provide information about their lending patterns and practices, to ensure fair lending. The Equal Credit Opportunity Act prohibits discrimination against borrowers based on specific characteristics. Each of these regulations plays an important role in protecting consumers but does not provide the specific right to cancel a loan within three days.