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#998890 - 07/18/08 02:32 PM Rescission
Znatok Offline
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Joined: Apr 2008
Posts: 19
Quick question: on the brokered mortgage / secondary market loans:
after temp financed loan matured, the Bank takes new loan app for the REFINANCE, funds the loan and sells them to Secondary Market. Question: does Rescission aplly to those loans, if only new money are applied towards the closing costs? No new money to the customer.

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#998910 - 07/18/08 02:49 PM Re: Rescission Znatok
rlcarey Offline
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Joined: Jul 2001
Posts: 79,898
Galveston, TX
It is all part of the RMT and would not be subject to the RofR.

12 CFR 202.2(a)(24)- Comment 4. Construction financing.

If a transaction meets the definition of a residential mortgage transaction and the creditor chooses to disclose it as several transactions under 226.17(c)(6), each one is considered to be a residential mortgage transaction, even if different creditors are involved.
The opinions expressed here should not be construed to be those of my employer:

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#998937 - 07/18/08 03:05 PM Re: Rescission rlcarey
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,953
Bloomington, IN
Randy gave the correct cite if these are temporary construction loans, but if they are other type of temporary loans then the ROR would not apply if they are no cash out refinances. See the Commentary to 226.23(f)(4).
The opinions expressed are mine and they are not to be taken as legal advice.

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