Reg. Z: Rescission

I have a question about whether a transaction is rescindable. Let’s say Bob Smith owns a dwelling, but it is not his principal dwelling. It will be, however, the principal dwelling of Jack and Jill Jones. Jack and Jill will not have any ownership interest in the property, they will only live there. Jack and Jill took out a temporary loan secured by Bob’s dwelling (Bob signed the mortgage), the purpose of which was to remodel the dwelling for Jack and Jill. Now, Jack and Jill wish to refinance the temporary loan into permanent financing, along with new money to complete the remodeling project. Bob will again sign the mortgage, because he is retaining ownership of the property. Our borrowers, Jack and Jill will live there, and will make the mortgage payments, but they will still not have an ownership interest in the property. My question: Is this loan rescindable? I say no, but I'm second-guessing myself. Thank you for your help!

(a) Consumer's right to rescind. (1) In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction, except for transactions described in paragraph (f) of this section.

With regard to RoR, you can stop right here. NO loan to anyone associated with this property can be rescindable.

I was definitely second-guessing. Thank you!