Don't forget that the Bureau has added a comment to Regulation X that addresses your question. It's comment 30(c)(2)-1, added effective October 19, 2017, concerning the loss of principal residence status.
Last edited by John Burnett; 12/15/17 05:17 PM.
1. Principal residence. If a property ceases to be a borrower’s principal residence, the procedures set forth in §§ 1024.39 through 1024.41 do not apply to a mortgage loan secured by that property. Determination of principal residence status will depend on the specific facts and circumstances regarding the property and applicable State law. For example, a vacant property may still be a borrower’s principal residence.
In my webinar on the New Servicing Rules, I offered this additional information --
"One example of a vacant property that may still be the borrower's principal residence is a property owned by a servicemember who has been deployed or reassigned to a duty station remote from the property, and the servicemember has chosen not to sell the property.
"This paragraph of commentary is one that servicers should discuss with their legal counsel."
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8