Posted By: Katherine
Appendix D to Loans to non-construction only loans - 06/21/19 03:23 AM
Our doc vendor is applying the Appendix D assumptions to loans that are for construction but not solely for construction in figuring out the Projected Payments Table. Apparently, according to their "legal interpretation" the following loans would apply to Appendix D:
1. Purchase loans that also have construction proceeds
2. Refinance loans where a portion of the funds are to refinance an existing lien and funds are also to construct
3. Construction loans where a portion is for construction and the rest are for home equity purposes (such as debt consolidation and would be disbursed at closing)
Having read Appendix D, I do not see where in the regulations that is blessed or based. I do not see such a blessing under 1026.17(c)(6) nor in Appendix D.
1. Purchase loans that also have construction proceeds
2. Refinance loans where a portion of the funds are to refinance an existing lien and funds are also to construct
3. Construction loans where a portion is for construction and the rest are for home equity purposes (such as debt consolidation and would be disbursed at closing)
Having read Appendix D, I do not see where in the regulations that is blessed or based. I do not see such a blessing under 1026.17(c)(6) nor in Appendix D.