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#279627 - 11/24/04 07:03 PM construction loans
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Are construction loans required to obtain an application?

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Lending Compliance
#279628 - 11/24/04 07:13 PM Re: construction loans
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
No. Look to the Official Staff Interpretations for 202.13.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#279629 - 11/24/04 07:25 PM Re: construction loans
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Great...found it, thanks so much!

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#279630 - 11/24/04 07:35 PM Re: construction loans
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Okay, another question for ya. Construction loans temp financing to build the customers primary home. Is this subject to the right of recission? We set up the sell to the secondary market to provide the perm financing upfront before the construction is finished.

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#279631 - 11/24/04 08:00 PM Re: construction loans
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
No, this is a RMT. But if it is secured by the "current" principal dwelling, it is subject to RofR.
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David Dickinson
http://www.bankerscompliance.com

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#279632 - 11/24/04 09:14 PM Re: construction loans
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
No, it is secured by the land and the anticipated home built. So it would be an RMT then right?

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