I wanted to confirm my thoughts on an issue. If you have a deal where cash out from fully owned Property A is being used to build new construction on fully owned Property B and only Property A serves as security on the loan, the TRID "Purpose" is "Home Equity.

Agree. The construction taking place has nothing to do with your collateral, which drives the TRID purpose.

(iii) Construction. If the credit is not for one of the purposes described in paragraphs (a)(9)(i) or (ii) of this section and the credit will be used to finance the initial construction of a dwelling on the property identified in paragraph (a)(6) of this section, the creditor shall disclose that the loan is for “Construction.”

Thank you, the bold part is what drove the decision for me as well, as (a)(6) is the "Property" that secures the loan. I would assume that if both pieces served as collateral, then "Construction" would be the accurate choice.

Yes, that's how i read it as well.

I agree. First scenario Home Equity. Second scenario Construction.