ROR Apply to Loan w/ Mobile Home As Collateral

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Question:

We have a customer that is purchasing a mobile home to put on land that they already own and we will be taking the land and the mobile home as collateral. Does the Right of Recession apply in this case? and if so why?

Answer:

No it would not. The loan is to purchase the dwelling (even if they currently own the land on which it will be placed) and the transaction would be considered under the definition of a "Residential Mortgage Transaction" or RMT found in Regulation Z and therefor would not require a right of rescission.