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#339245 - 03/28/05 04:59 PM right to rescind

We have a customer who is purchasing a new home to be their principal dwelling. We are taking a mortgage on this home and their older home that they are in the process of selling. Do we need to do a right to rescind?

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Lending Compliance
#339246 - 03/28/05 05:00 PM Re: right to rescind
TomS Offline
Gold Star
Joined: Jan 2004
Posts: 318
Yes, because you are taking a security interest in their current principal dwelling.

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#339247 - 03/28/05 05:18 PM Re: right to rescind
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
Lee is correct and you can find confirmation in the Commentary to 226.23(a)(1)(4).
The opinions expressed are mine and they are not to be taken as legal advice.

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