I know Reg Z says a consumer can only have one principal dwelling at a time, but also in the OSC 226.23(4) it gives the special rule that a loan to buy a home that will become the principal dwelling of the borrower and secured by either their current principal dwelling or their current principal dwelling and the home being purchased, is rescindable. The latter of these is the scenario i'm looking at: home being purchased and current home both securing this purchase loan. However, we are not treating it as a bridge loan (at least in my mind)...it's not temporary; it's set up as a 3 year balloon with the LO noting that when first home sells, they will apply that to this loan (and then look at possibilities in secondary market). So i know this is rescindable. My question pertains to HPML and escrows.....i don't believe i can exempt this from HPML, as it isn't temporary financing. So it appears we must escrow. But, escrow for which? The new home being purchased? The current home? Both? Thanks for any help. (Almost forgot another important part of this.....home being purchased is a mobile home....so we would be good not escrowing for that one since we aren't in October yet....) So i guess my question gets amended.....do i have to escrow for the current home?
Last edited by raitchjay; 06/30/10 06:05 PM.
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