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#32513 - 09/12/02 06:26 PM Was I Dreaming?
Suwannee Offline
Platinum Poster
Suwannee
Joined: Jun 2002
Posts: 641
Florida
Did I read somewhere in Section 32 (HOEPA) that it excluded home equity loans where there was no current lien? Or, was I dreaming?
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#32514 - 09/12/02 06:37 PM Re: Was I Dreaming?
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
The only loans that I'm aware of that are exempt are:
A resdidential mortgage transaction;
A reverse mortgage transaction; or
An open-end credit plan

Sec. 226.2 Definitions and rules of construction.
(24) Residential mortgage transaction means a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained in the consumer's principal dwelling to finance the acquisition or initial construction of that dwelling.

So I think you were dreaming, but it was a nice dream.
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#32515 - 09/12/02 06:43 PM Re: Was I Dreaming?
Lestie G Offline

Power Poster
Joined: May 2002
Posts: 3,606
Near the Land of Enchantment
What do you mean by a current lien?
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#32516 - 09/12/02 06:51 PM Re: Was I Dreaming?
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,765
Bloomington, IN
I assumed they were doing a home equity loan on the borrower's residence that currently has no outstanding mortgages which would put them in a firest lien position. So if their product is a closed end loan, it would not be exempt. If it's a HELOC, then it would be exempt.
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#32517 - 09/12/02 09:47 PM Re: Was I Dreaming?
Howard Lax Offline
Gold Star
Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
Note that the rules going into effect on October 1 prohibit evading Section 32 by originating a HELOC rather than a closed end loan.
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