IS ROR Required on a Permanent Takeout of A Constr

Posted By: CMSIngenue

IS ROR Required on a Permanent Takeout of A Constr - 04/18/19 11:51 PM

Is the Right of Rescission required on a permanent take out of a construction loan? Can someone provide the statutory cite on where I can find the answer in Reg Z?
Posted By: rlcarey

Re: IS ROR Required on a Permanent Takeout of A Constr - 04/19/19 12:59 AM

Official Interpretation

2(a)(24) Residential Mortgage Transaction

Comment 4
Posted By: Love those Regs

Re: IS ROR Required on a Permanent Takeout of A Constr - 05/29/19 06:15 PM

Just wanting to double check - we did the construction loan and was not certain who would provide permanent financing. We ended up doing the permanent - we did a change in terms rather than a new note - does that make any difference? I'm still thinking this is a residential mort. transaction and ROR does not apply. No new funds. Simply terming out the construction loan.
Posted By: rlcarey

Re: IS ROR Required on a Permanent Takeout of A Constr - 05/29/19 06:38 PM

Construction financing. If a transaction meets the definition of a residential mortgage transaction and the creditor chooses to disclose it as several transactions under ยง1026.17(c)(6), each one is considered to be a residential mortgage transaction, even if different creditors are involved.