Which of the following statements is not true concerning "higher-priced mortgage loans" as defined in the Truth in Lending Act (TILA)?
1) Creditors must verify income and assets in order to determine whether the loan applicant has the ability to repay the loan.
2) Creditors must establish an escrow account for taxes and property insurance on first lien mortgage loans.
3) There are restrictions on prepayment penalties.
4) Borrowers have a five-day right of rescission.
