We have a Home Equity loan (consumer purpose) and the collateral is a duplex which is owned by a business (a husband and wife). The duplex is also the principal dwelling for the business owners. The loan is in the personal name of the business owners not the business name. The fact that the mortgage for the duplex is titled in the business name is what is confusing me. I definitely think the loan is covered under Regulation Z I am just not sure if the right of rescission section applies since it refers to "consumer's" principal dwelling. Any thoughts on whether right of rescission applies?

I would say that ROR does apply. You have a loan to consumers secured by their primary dwelling.

But, the consumers don't own the property. If they don't have ownership in the property they don't have rescission rights.

I'd probably look at how the business is set up. The more "closely held" the business is the more likelihood the consumers may have "ownership" in the property.

I'm straddling the fence on this one right now, but when in doubt, disclose.

Define "business." If the people have no ownership interest in the property, they have no right to rescind. Is the property owned for example by a corporation or LLC?

To follow up: we determined that right of rescission is not required in this situation since the property is in the name of the business. Thanks for the input!