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#801206 - 08/23/07 05:01 PM ROR - HMDA reportable?
trainer53 Offline
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trainer53
Joined: Dec 2001
Posts: 85
I know I have seen this issue many times within threads, but I now have the situation:

2nd mortgage to purchase property (funds for downpayment) HMDA reportable as purchase = yes?

Is this second mortgage rescindable??? Can't find in requlation and since it purchase for owner-occupancy, I'm thinking yes

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Lending Compliance
#801233 - 08/23/07 05:17 PM Re: ROR - HMDA reportable? trainer53
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,344
No, it is not rescindable. It is a purchase money second mortgage. Only true refis are rescindable.

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#801255 - 08/23/07 05:27 PM Re: ROR - HMDA reportable? Truffle Royale
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I agree with Truffle on both answers.
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#801266 - 08/23/07 05:33 PM Re: ROR - HMDA reportable? trainer53
ahou Offline
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ahou
Joined: Aug 2002
Posts: 3,094
I'm not sure I understand your situation. If you mean 2nd mtg secured by current prin dwelling to make a down pmt on another property, then yes it is rescindable. (any ln subject to Reg Z & sec by the equity in the current prin dwell is subject to the right of recission)

If the customer is purchasing a home and at the same time he will be getting a second mortgage on the home he is purchasing for the down payment there are no rescission rights. The purpose of both transactions is to purchase the principal dwelling; thus they are both exempt.
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