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High Priced Mortgage Regs Apply to Construction?

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Question: 
Do high price mortgage regs apply to construction line of credit loans?
Answer: 

1026.35(a)(3) Notwithstanding paragraph (a)(1) of this section, the term "higher-priced mortgage loan" does not include a transaction to finance the initial construction of a dwelling, a temporary or "bridge" loan with a term of twelve months or less, such as a loan to purchase a new dwelling where the consumer plans to sell a current dwelling within twelve months, a reverse-mortgage transaction subject to 1026.33, or a home equity line of credit subject to 1026.40.

First published on BankersOnline.com 12/17/12

First published on 12/17/2012

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