Refinance subject to Reg Z and RESPA

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Question:

When is a modification of an existing real estate loan considered a refinance, subject to Reg Z and RESPA?

Answer:

A refinancing occurs when the existing obligation is satisfied and replaced by a new obligation undertaken by the same consumer. Detailed discussion of this is located in Reg Z and Commentary under Section 226.20(a).

First published on BankersOnline.com 1/7/02