Skip to content

Does Rescission Apply to Pending Loan?

Answered by: 

Question: 
We have a consumer real estate construction to permanent loan pending. Does rescission apply?
Answer: 

An RMT is not subject to the right of rescission:

Official Interpretation

2(a)(24) Residential Mortgage Transaction

4. Construction financing. If a transaction meets the definition of a residential mortgage transaction and the creditor chooses to disclose it as several transactions under §1026.17(c)(6), each one is considered to be a residential mortgage transaction, even if different creditors are involved.

First published on 01/05/2020

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics