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#1772728 - 01/04/13 08:32 PM ROR-land only loan to construction-perm loan
OhBeeTee Offline
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Joined: Jan 2008
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Having trouble finding a definite answer for this situation through online searches and the regulation:
We financed a land only purchase a couple of years ago. The same borrowers have come back for a construction-to-perm mortgage to build their primary residence on that land, so we will pay off the land only loan with the new construction to perm loan. Is this a rescindable transaction?

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Lending Compliance
#1772731 - 01/04/13 08:34 PM Re: ROR-land only loan to construction-perm loan OhBeeTee
RR Joker Online
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RR Joker
Joined: Nov 2002
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The Swamp
No
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#1772773 - 01/04/13 09:06 PM Re: ROR-land only loan to construction-perm loan OhBeeTee
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The same borrowers have come back for a construction-to-perm mortgage to build their primary residence on that land

Having trouble finding a definite answer for this situation through online searches and the regulation:

Look at 1026.2(a)(24) for the definition of a Residential Mortgage Transaction, then look to 1026.23(f) for the exemptions to rescission.
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The opinions expressed are mine and they are not to be taken as legal advice.

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