Question on TRID purpose and rescission. The staff has me doubting myself
Construction company built a spec home in the name of the company.
The owner of the company (NOT a DBA or sole prop) has decided to transfer the ownership of this spec home and take out a loan to themselves and live in it.
My thoughts on TRID purpose would be purchase as the title will be moving from the name of the company to the person. The person will be acquiring title. Lending staff believes it will be Refinance as the person owns the company and the spec loan will be paid off. Based on my understanding of 1037(a)(9)-1ii this is not a refinance under TRID as we are not refinancing the consumers existing obligation. We are refinancing a companies obligation into a consumers name with a change of title.
Rescission I do not believe it is required as they do not currently live in it. It was not built for them as it was built as a spec. Lending staff keeps asking me if I am wrong. I have reread 1026.23 and believe I am right as it is not currently their principal dwelling and will only become so after this transaction. (1026.23(a)(1)-3
Am I offer my rocker with my interpretations?