The previous Commentary to Reg Z at 1026.5b contained the following statement regarding a matured HELOC: "...A new plan results; however, if the plan is renewed (with or without changes to the terms) after the scheduled expiration. The new plan is subject to all open-end credit rules, including sections 226.5b, 226.6 and 226.15."
I have not found any comparable interpretations by the CFPB since the CFPB took over responsibility for Regulation Z. I'm looking for any information that will support the need, or lack thereof, to require a Notice of Right to Cancel when a new HELOC note is executed after the existing HELOC has matured.
If a customer has an existing Home Equity Line of Credit and then approaches to increase the HELOC by an additional amount of money, can a Change in Terms Credit Agreement and Disclosure be used for that or do we have to rewrite the loan as a new loan request? Obviously, if we are able to use the Change in Terms agreement, a Modification of Mortgage would need to be prepared and filed of record. What about Rescission on the new money? Do we have to give them an actual Notice of Right to Cancel form or can we just wait 3 business days from the date of the Change in Terms before we fund the new money?
Is a Right of Rescission required on a streamlined refinance when only closing costs are being added to the loan? There is no cash out to the borrower.
We have a customer that has occupied a residence that they are purchasing, and they do not have another residence. Does the right of
rescission apply to early occupancy in a purchase transaction? We have gone round and round with differing opinions.
What does a customer need to do to waive the three-day rescission period?
Does a Right of Rescission for a HELOC have to state that the loan is an open-end loan? All the rescission forms in Appendix G include reference to an open-end loan.
We are refinancing a construction loan to permanent financing. The borrower lives on the property in a mobile home that will be sold once the borrowers move into the newly constructed home. Because they are living on the property, would there be right of rescission on the refinance of the construction loan?
Borrower A & B are purchasing residential property from Seller C.
Borrower A & B already live at this residential property and pay rent. Since this is their primary residence would they have a right to rescind (under The Truth-In-Lending Act) or would this fall under the "Residential Mortgage Transaction" and be exempt?
A borrower signs the Note and receives the rescission disclosure and all the other disclosures on the Note date. After the rescission period passes and the funds are disbursed, can the effective date of the loan that interest begins accruing be the Note date or the date the funds were actually disbursed?
Does ROR apply to an Agriculture 1st Mortgage land purchase loan when taking a 2nd mortgage equity lien on the borrower's residence? Borrowers are not full-time farmers and the loan is made to them individually (not a corporation or "business").