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

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
USA
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).
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The opinions expressed are mine and they are not to be taken as legal advice.

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