I have a construction loan that was initially set up for 12 months. Because of weather and contractor delays, they need a 3 month extension to complete construction. Since this is a Construction loan would it still be exempt from HPML, even though we are exceeding 12 months? We plan to simply extend the current construction loan. Upon completion and occupancy we will refinance the construction loan into end financing.

It is a subsequent event.

What if you have a situation where the perm financing falls through and we decide to modify the construction loan in-house which essentially converts it to perm.

Would HPML rules apply and an escrow account required at the time of modification? Or is this still considered a subsequent event and no escrow required?