Right of Rescission and End Loans

Good Morning,

When we have an End Loan (new construction of a primary residence) that involves cash back to the customer because the project came in under budget (so the cash back won't be used for any construction-related expenses), are we required to give the right of rescission? I know that based on the previous law, it wouldn't be (see https://www.bankersonline.com/qa/right-rescission-construction-loan-plus-additional-funds). However, the law is a bit different now, so has the answer changed? My gut tells me that the transaction is exempt as it's a residential mortgage transaction, and the fact that there is cash back is irrelevant. However, the commentary is a bit confusing. Does anyone have any clarification?

Thanks,

R. Shackleford

1026.2(a)(24) - Comment 6

6. Multiple purpose transactions. A transaction meets the definition of this section if any part of the loan proceeds will be used to finance the acquisition or initial construction of the consumer's principal dwelling. For example, a transaction to finance the initial construction of the consumer's principal dwelling is a residential mortgage transaction even if a portion of the funds will be disbursed directly to the consumer or used to satisfy a loan for the purchase of the land on which the dwelling will be built.

Thank you, Randy!!!

R. Shackleford