Does a state DPA bond 2nd mortgage program that is zero interest with a balloon payment due when:
- the property is sold;
- title is transferred;
- home is no longer the primary residence;
- the first mortgage loan is refinanced; or
- the first mortgage loan is paid in full
meet the partial exemption requirements of §1026.3(h)(4)?
Assuming it meets all the other requirements of 3(h), I don't think it meets the requirements of (4) because of the criteria of the payment being due when the first mortgage loan is refinanced or paid in full without the property being sold or title transferred. The bond agency believes it meets the requirements of partial exemption and apparently the servicer does also.