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#895984 - 01/30/08 01:42 PM Principal Dwelling.
noleman Offline
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Joined: Feb 2006
Posts: 126
I am confused regarding a previous post about rights of recission and principal dwelling. We have customers that own a home but are having repairs done on their home. They are currently in a rental home. If we mortgage their home that they own, does right apply.

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#895998 - 01/30/08 01:51 PM Re: Principal Dwelling. noleman
A D Virr Offline
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Joined: Oct 2000
Posts: 398
Derry, NH
There some questions unaddressed in your post. Are the customers not living in the home because of damage to the property or a major renovation to the property? The reason I ask this is that it may not have ceased to be their principal dwelling. I would err on the side of caution and extend the right of rescission.
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Allan D. Virr, CRCM,CRP
Compliance Audit Solutions, LLC

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#896008 - 01/30/08 01:58 PM Re: Principal Dwelling. A D Virr
noleman Offline
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Joined: Feb 2006
Posts: 126
They bought the property several months ago and needed repairs. They are moving in after we close the loan.

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#896021 - 01/30/08 02:08 PM Re: Principal Dwelling. noleman
A D Virr Offline
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Joined: Oct 2000
Posts: 398
Derry, NH
So, what you are telling me is that they never occupied the house as a principal dwelling. In that case, this is a purchase money mortgage where the borrower intend upon completion of renovations to make their principal dwelling. No rescission applies according to 226.23(f).
_________________________
Allan D. Virr, CRCM,CRP
Compliance Audit Solutions, LLC

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#896025 - 01/30/08 02:10 PM Re: Principal Dwelling. noleman
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 10,179
Toano, VA
Adding this critical detail causes the arrangement to look like acquisition/construction--a RMT.
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...gone fishing.

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#896087 - 01/30/08 02:51 PM Re: Principal Dwelling. Richard Insley
noleman Offline
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Joined: Feb 2006
Posts: 126
I am not sure what you mean in your reply as far as acquistion/construction, and what that has to do with rights.

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#896099 - 01/30/08 03:04 PM Re: Principal Dwelling. noleman
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
From your posts it appears the borrowers already own this home from a purchase transaction from several months ago and you were not a part of that transaction. It would help if you gave us the details and purpose of your loan.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#896100 - 01/30/08 03:04 PM Re: Principal Dwelling. noleman
Truffle Royale Offline

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Posts: 17,395
RMT = Residential Mortgage Transaction...translation, a purchase not a refi, so ROR wouldn't enter into it, if that's the case.

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