When you read the rule, you see that it is very much like a decision tree. If the loan fits the first option, that is the one you must use, and you stop the decision tree. That's how home equity becomes the dumping ground for everything that doesn't fit one of the first three categories.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8