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#816429 - 09/17/07 04:25 PM Quick ROR question
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Consolidation of a HELOC and a few consumer loans into a closed ended loan. Same collateral, no new funds. No ROR, right?

Thanks

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Lending Compliance
#816482 - 09/17/07 05:18 PM Re: Quick ROR question Reed
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,886
Bloomington, IN
Wrong. Consolidating the consumer loans would be new funds, increasing your security interest in the primary residence.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#816527 - 09/17/07 05:56 PM Re: Quick ROR question Dan Persfull
Reed Offline
Diamond Poster
Reed
Joined: Sep 2005
Posts: 1,251
West Coast
Thanks, Dan. Good thing I asked!

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#818164 - 09/19/07 05:18 PM Re: Quick ROR question Dan Persfull
Pickles Offline
Gold Star
Joined: Apr 2006
Posts: 275
Beach Bum, East Coast, USA
Now, I'm confused..... I thought that when a borrower is refinancing a HELOC balance into a new HEIL that the loan is rescindable whether there is new funds borrowed or not?
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#818190 - 09/19/07 05:35 PM Re: Quick ROR question Pickles
GSR Offline
Member
Joined: Mar 2007
Posts: 59
I am with Dan--this is rescindable.

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#818192 - 09/19/07 05:35 PM Re: Quick ROR question Pickles
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,886
Bloomington, IN
If you refinance a HELOC into a closed-end HE loan and advance no new money then the refinancing is not subject to rescission.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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